Euro Banking Association explores blockchain for RegTech

The Euro Banking Association (EBA) has published a report about using distributed ledger technology (DLT) for a variety of compliance applications. In particular for know your customer (KYC), anti-money laundering (AML), and general compliance with banking oversight.

Shocking cost of KYC

In 2016 Thomson Reuters interviewed 800 financial institutions about KYC. The average firm paid $60m a year for KYC compliance with some spending up to $500m annually. Companies operating globally may have to implement different KYC practices for separate jurisdictions. Additionally, KYC procedures are often siloed, paper-based and require a significant investment in compliance resources. KPMG found that 80% of the KYC effort is spent on information gathering and processing and only 20% on assessing and monitoring.

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