Distributed Ledger Technology: Streamlined CDD Examination Process through Blockchain Application- Why Auditors Should Embrace New Technology

Nella Zelensky

We all are very fortunate to be living through the era of Internet and enjoying all the technological advancements of the last few decades, – email, social media, mobile apps, e-commerce, smart TVs, and more. And just when someone might be wondering what’s is next, – it’s screamed from every post on LinkedIn and all TV programs: BLOCKCHAIN!

According to the Blockchain Research Institute, there are currently over 70 in-depth research projects on blockchain strategies and market opportunities in different sectors and industries. Billions of dollars have already been invested in the growing blockchain landscape, and there are numerous successful blockchain pilot programs. Finance and banking is, probably, where there is more at stake, specifically in the area of customer information management. Since application and development of blockchain technology is in its early stages, it is premature to say whether blockchain can handle the most complex processes and bring a future revolution in financial markets. One thing is for sure, however: blockchain technology is spreading around the world and making its mark in the finance industry space!

The intended audience for this report is compliance professionals, AML practitioners, internal and external AML auditors, and developers of blockchain platforms for customer information management. The goal is to raise awareness of this new technology and empower AML professionals and auditors to learn a process of blockchain application relevant to anti-money laundering and find out how blockchain technology, also known in the financial services industry as Distributed Ledger Technology, or DLT, can enhance customer due diligence.

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