Regulatory Framework

Blockchain Monitoring

Development of new technologies has enhanced the ease and speed at which funds can be accessed, but created new methods of transferring illicit funds and financing terrorism globally. In light of this development risks previously limited to certain jurisdictions should now be addressed by all financial institutions around the globe. A robust anti money laundering and counter terrorism financing (AML/CTF) framework is a common goal for regulators and banks but it is the bank’s responsibility to be aware of its own vulnerabilities and risk exposures through correspondent banking relations, retail banking, corporate or investment banking operations. However, it is not only the banking industry that is changing. Thanks to the development of online services, such as corporate registration, legal service provision or trade of goods it has become much easier to perform and rationalize global flow of money. Financial institutions need to be aware of all the risks, both old and new, of the environment in which they have come to operate. This may also require reconsideration of risk assessment approach, especially taking into account some of the aspects further discussed in this article.

Blockchain architectures predominantly focus on technology and less on business process simplification, so business-led architecture is the key. Understanding the business outcomes is crucial. Also, explore data flows and build direct connections between trading partners, suppliers and customers across the ecosystem. You want to rationalize the business architecture all the way through to the value chain and partner ecosystem.