Dubai International Financial Centre (DIFC) and Mashreq bank announced the launch of their new blockchain data-sharing platform on March 1st to expedite the digital bank accounts opening facility. The digital bank accounts opening leverages on blockchain technology.
The KYC platform will allow licensed businesses and corporations to open digital bank accounts instantly by verifying their identities via an internal blockchain. The platform is available to all UAE-based companies and banks.
Mashreq accomplishes this by replacing the existing paper-based KYC procedure with a blockchain-centric digital one. DIFC prepares each new KYC record as part of a company’s corporate license application. This information is then shared electronically with Mashreq via the blockchain as long as users consent to it. The result is a simplification of the process companies currently go through when opening a new bank account, making it easier and faster for new companies to do business in the UAE.
DIFC-incubated fintech firm Norbloc provided the blockchain platform (Fides), Gowling WLG supported the drafting of the legal agreements, while Deloitte supported Mashreq with governance and program management, the statement said.
The DIFC’s legal framework places an emphasis on data protection, while maintaining practices which are consistent with all EU regulations and OECD guidelines. Their system is designed to help organisations process compliance information, while simultaneously upholding every individual’s privacy rights.