The blockchain-based national eKYC banking platform aims to strengthen Anti-Money Laundering capabilities while countering terror financing.
The Pakistan Banking Association (PBA) – an association of 31 traditional banks operating in Pakistan – has approved the development of a blockchain-based Know Your Customer (KYC) platform.
On March 2, PBA signed the project agreement to develop Pakistan’s first national eKYC banking system, as reported by Daily Times. The move aims to build anti-terrorist financing capabilities – an initiative spearheaded by the State Bank of Pakistan (SBP).
Member banks include international companies such as the Industrial and Commercial Corporation of China, Citibank, and Deutsche Bank. In addition, the blockchain platform will improve operational efficiency, which is key to improving the customer experience during onboarding.
Avanza Group was commissioned to develop a blockchain-based eKYC named “Consonance”, which member banks will use to process and exchange customer data through an unregulated and private network. However, customer details will be shared based on consent, which will allow the bank to monitor existing and new customers.
Joining other countries in the race to develop a central bank digital currency (CBDC), Pakistan recently signed a new law to ensure the launch of a CBDC by the year 2025.
The SPB will authorize e-money companies to issue CBDCs. “These significant orders demonstrate SBP’s commitment to openness, technology adoption, and digitization of our financial system,” said SBP Deputy Governor Jameel Ahmad.
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