Spanish banks to develop KYC blockchain platform
Spanish banking consortium Niuron is to develop a platform that uses blockchain technology to verify its clients’ identities, according to a report in EuropaPress.
The group, which includes Abanca, Bankia, CaixaBank and Ibercaja, is developing so-called “onboarding” software – technology that helps banks identify customers who are opening an account for the first time.
Know your customer
This type of technology is used to help banks comply with “know your customer” (KYC) regulations – founded to combat money-laundering and other illegal financial activity.
Niuron said it believed the new blockchain platform, which it hopes to create by the end of this year, will speed up the onboarding process – reducing the time required for registration – and reduce fraud and criminal activity.
Spain has been a major centre for money laundering as it an important gateway for illegal drugs entering Europe from Africa, whose Moroccan coast is only 20 miles away.
The country, however, has taken its duty to combat such criminal behaviour very seriously and its KYC rules cover all financial institutions as well as postal services, real estate agents, legal advisers and lawyers, accountants and casinos.