Deloitte’s proof of concept for the KYCstart program will offer benefits for businesses that adhere to KYC regulation.
The model links regulated KYC entities with businesses who must adhere to those regulations. These entities perform KYC checks with blockchain-backed technology that streamlines the verification. Authorizations provided by customers can be easily referred to on a distributed ledger with executable distributed code contracts (EDCCs). When a customer would like to do business with a new entity, veracity checks against previous business dealings may be performed with EDCCs on a blockchain.
Director at Deloitte Luxembourg Maxime Heckel offered some insight on the innovation in an announcement:
“Providers can now rely on specialized entities to delegate and mutualize the KYC and AML/CTF procedures, reducing the cost of both onboarding and ongoing monitoring."
Because checks must be performed each time a customer enters into a new business arrangement with institutions bound to KYC regulation, often the same checks are made for the same customer many times. The bureaucracy of this process can now be greatly reduced by blockchain automation, saving time and money while adhering to existing regulatory statutes.
Deloitte Luxembourg intends to show its proof of concept at the ICT Spring Global Tech conference, at the European Convention Center Luxembourg.