Two Sydney-based companies Kyckr and Identitii have announced the utilization of Bitcoin’s underlying technology, the blockchain technology, to establish strategies for commercial banks against international money laundering and terrorism.
Kyckr, a real-time platform provider with access to 153 business registers, is an IPO candidate that has developed a blockchain-based global real-time identity verification. The company is working on building a distributed ledger-based application for banks to meet the standards of Know Your Customer (KYC) regulations, which require financial institutions to obtain personal data of their customers.
Essentially, the company is collaborating with banks to create a cross-bank identification system, which can be used by multiple financial organization across the globe to access digital identities on a real-time platform.
The CEO of Kycker, David Cassidy, firmly believes that the unique real-time blockchain-based software the company is developing for banks will provide major financial establishments with a solution to their money laundering and terrorism financing-related disputes.
Over the past few decades, many of the world’s largest banks and financial institutions have suffered from serious money laundering cases, which ultimately resulted in billions of losses and fines. For instance, HSBC and JPMorgan paid a cumulative fine of US$3.6 billion over the past four years, in fines and penalties alone.
Considering magnitude of the losses of major financial institutions, Cassidy and the Kycker team suggest that an irrefutable and blockchain-based secure identity platform could help banks keep up with tight KYC regulations around the world.
Cassidy also believes that as one of the unique startups in the market that offers real-time solutions to banks and financial establishments, Kycker is expected to have great potential in the industry.
“The reference (in the BIS report) to KYC utility providers such as Clarient, kyc.com and SWIFT suggests that they can provide real time view but they do not,” Cassidy said.
“They provide a real time view from the information they store. The issue is that this information is not maintained live from the compliant sources with sufficient global spread to meet the needs of legislation and their banking clients KYC obligations.”