Q2 2023 | norbloc newsletter

The last couple of months have been riddled with happenings in the financial world, from stricter #regulations in the crypto space looming on us and #fines for faulty due diligence, to yet another unsuccessful centralized KYC utility effort.

In case you missed the news, the latest attempt from Swedish banks?to create a centralized #KYC utility has officially failed. Founded back in 2019 with hopes of creating a joint standard and platform for KYC processes, #Invidem is now winding down due to regulatory and technological developments that have "made this task more complex than was anticipated."?

At the same time, norbloc's decentralized KYC utility in the UAE is thriving. So what has actually led to the collapse of the Nordic KYC Utility and why should banking customers care?

??Read what our CEO, Astyanax Kanakakis , has to say about what went wrong and what could have been avoided:

"The sad conclusion of an effort to make bank customers happier (and banks and regulators too!)"

??Industry news worth reading

The #UAE Central Bank has issued new AML and CTF guidance for financial entities regarding virtual assets and virtual asset providers (VASPs) which will come into effect in the coming weeks.

Banks, payment companies, exchanges, insurance firms and brokers will have to refine their current monitoring and KYC processes to comply with more stringent rules; collaboration with #VASPs without a national license is prohibited and to open an account for a VASP, entities will have to submit a case-by-case request to the Central Bank for non-objection.?

Furthermore, the guidance calls for:

• conducting a one time review and #risk assessment of the existing customer portfolio and?performing risk-based ongoing monitoring,
• establishing a compliance #monitoring plan for customers requiring enhanced due diligence measures, and?
• understanding the nature of the customer’s business and creating a customer profile.?

In the #UK, just this week the FCA published data on the #fines handed out so far in 2023 which currently measure up to ￡29 million.

At the same time, HM Revenue and Customs has named hundreds of businesses that failed to comply with #AML regulations and have now been fined a total of ￡3.2 million for breach.?

• Xpress Money Services Ltd alone has been fined ￡1.4 million for failing to conduct risk assessments, having inadequate controls and due diligence checks.
• Another 219 entities have been fined in England alone and risk loosing their license to operate.

Following the latest plenary session of the Financial Action Task Force (FATF) in Paris last week, Croatia has now been added to the grey list of countries that require increased monitoring due to deficient AML and #CTF processes. This makes Croatia the only #European country currently on the list. ?

Croatia has made a #commitment to improve its regime by:

• licensing and monitoring the registration of VASPs (in line with the latest FATF report on virtual assets),?
• enhancing and implementing more effective #sanctions in supervisory activities, and?
• improving implementation of preventive measures for high-risk sectors.

?? In case you missed it...?

The UAE KYC Blockchain Platform grows with the addition of Al Masraf?and Abu Dhabi Islamic Bank.?

Powered by norbloc's FIDES, the #blockchain-based platform facilitates the secure sharing of e-KYC data. The network, which has been live since 2020, connects licensing authorities, free zones and financial institutions across the Emirates in an ecosystem, where a single version of each customer KYC file is maintained and shared, ensuring that financial institutions always have access to the latest and most up-to-date KYC data, including #KYB data.

Currently, the ecosystem has 16 participating entities and holds more than 60% of the corporate data in the region.

norbloc was at the Global RegTech Summit 2023

Institutions such as Citi, HSBC and more, highlighted the importance of building #resilient KYC and AML processes without sacrificing customer experience, thinking of the long-term safety of the entity against money laundering, terrorist financing and fraud.?

To that effect, there is great importance in choosing #digital solutions today that can grow as an institution grows covering needs not just for this season but for the next 5 to 10 years.

Recently, norbloc was included in FinCrime & Compliance Briefing by Sifted Europe, highlighting norbloc's scalable end-to-end KYC and AML orchestration platform, SANCUS. This digital platform is fully equipped with #identity verification, AML checks and risk #reporting functionalities to fortify regulated entities against financial crime in a day and age of ever more complex regulatory requirements and increasingly many fraudsters.

?? Contact us for more on digital transformation of KYC processes.?

What should you be considering when choosing between DLT & API connectivity?

As the first-ever #RegTech company to successfully implement a live, distributed KYC utility, norbloc's Head of Implementation, Vijayalakshmi Tenbarai Seshadri along with the norbloc team, have put together a report on #DLT vs #API Connectivity. The spotlight is on #data sharing, the key questions and considerations that financial institutions should be asking and contemplating to make the right choices for KYC and #remediation in the long run.

Click to find out more from Viji, our Head of Implementation ??

Careers at norbloc

We're looking for the next additions to our team:

• DevOps Software Engineer?(Athens, Greece or remote)?
• Internship position - commercial or product department (Athens, Greece or remote)

Join us as we work to revolutionize secure data sharing!