International financial free zone within the capital of the UAE has concluded the first phase of its Blockchain-based KYC utility project

Abu Dhabi Global Market (ADGM) has announced the conclusion of the first phase of the industry electronic-Know-Your-Customer (e-KYC) utility project.

The e-KYC project, launched in March 2018, was a Financial Services Regulatory Authority-led collaboration with a consortium of the UAE’s major financial institutions, including Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Al Ansari Exchange, Al Fardan Exchange, First Abu Dhabi Bank and UAE Exchange. The objective was to develop a proof-of-concept to test operational and technological models of the e-KYC utility.

In consultation with consortium members, the FSRA also developed a governance framework and business model on which the e-KYC utility can operate on an inclusive and sustainable basis.

Richard Teng, CEO of the FSRA of ADGM said: “By harnessing the power of technologies such as blockchain, the e-KYC project has demonstrated tangible benefits that may be offered by an e-KYC utility for financial institutions in the UAE. In addition to enhancing KYC checks across the industry, the utility can achieve significant cost efficiencies and financial inclusion driven by unified KYC standards.

“The use of digital platforms to share information, transact and test solutions forms a core part of ADGM’s FinTech strategy. We look forward to delivering further meaningful results through the ADGM Digital Sandbox initiative, where we will facilitate FinTech-institutional partnerships and host consortium projects such as the e-KYC project.”

Umair Hameed, financial services advisory partner, KPMG, said: “It is very encouraging to see ADGM’s initiative bringing together public and private-sector entities to collaborate and drive innovation in the UAE. These collaborations are at the heart of the UAE’s FinTech strategy, to drive technological advancements across sectors.”

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