The US credit rating agency Moody's Investors Service has set the KYC (Know Your Customer ("Know Your Customer")) blockchain platform of the UAE financial institution as a positive credit rating.
The new platform for the consortium of the six major UAE banks was developed in partnership with Norbloc, a blockchain platform and application provider. According to local news reports, the platform is expected to launch in the first quarter of 2020 with the aim of improving compliance and the lender's regulatory framework.
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The rating agency said: "We expect the KYC blockchain consortium platform to mainly improve the asset quality of UAE banks by reducing operational risks. The platform will ensure faster and more secure logins, and distributed technology supported by blockchain Exchange certified and verified digital customer data and documents. "
Moody's points out that ignoring KYC regulations could result in significant penalties and severe legal consequences for banks, especially in the areas of anti-money laundering and terrorist financing.
The platform ensures better compliance with local and international KYC rules while reducing the risk of data theft. The blockchain platform aims to reduce the cost of managing paper KYC data for banks.
Moody's concluded: "We expect other UAE-based financial institutions and authorized institutions to gradually join this platform and it has the potential to become an important part of the country's digital ecosystem."
At present, the consortium is composed of six banks, which control nearly 44% of the UAE's bank assets, namely: Emirates NBD, Emirates Islamic — Islamic Shariah Compliance of the Emirates National Bank Company), HSBC Bank Middle East, The National Bank of Ras Al Khaimah, Abu Dhabi Commercial Bank and ommercial Bank of Dubai ).
Smart and competent government agencies in Dubai and the UAE Central Bank will oversee and regulate the operation of the consortium.
Decrypt reported in January this year that the Dubai Multi Commodities Center plans to establish its own "cryptocurrency valley" in the UAE, similar to an economic zone created by Switzerland.
In the past, Dubai has also cooperated with the German conglomerate Siemens to promote blockchain education, which further proves the seriousness of its intention to become the first international economy to rely entirely on blockchain operations. With the new KYC platform, they seem to be on the right track.
This article has been authorized for translation by DecryptMedia.com