The goal of the Pakistan Banks’ initiative is to improve AML and stop terrorist groups from getting money
The Pakistan Banks Association (PBA), a consortium of 31 conventional banks operating in Pakistan, approved the development of a Know Your Customer (KYC) platform based on blockchain technology.
According to the Daily Times, the PBA inked the contract to construct Pakistan’s first blockchain-based national eKYC banking platform on March 2.
The program, which is sponsored by the State Bank of Pakistan, intends to boost Anti-Money Laundering capabilities and combat terror funding (SBP).
International institutions such as the Industrial and Commercial Bank of China, Citibank, and Deutsche Bank are among the member banks.
In addition, the blockchain platform will enhance operational efficiency, with the primary objective of enhancing the client experience during onboarding.
The Avanza Group has been charged with developing “Consonance,” a blockchain-based eKYC technology that will be used by member institutions to standardize and share client data through a decentralized and self-regulatory network.
Nonetheless, customer information will be shared depending on agreement, enabling banks to evaluate current and prospective clients.
Pakistan has enacted new rules to assure the establishment of a central bank digital currency (CBDC) by 2025, joining other nations in the race to build a CBDC.
The SPB will provide electronic money institutions licenses for CBDC issuance.
“These groundbreaking laws demonstrate the SBP’s commitment to openess, technology adoption, and digitalization of our financial system,” stated Jameel Ahmad, Deputy Governor of the SBP.
