Pakistan banks agree on blockchain-based KYC system development

The Pakistan Banks’ Association (PBA), a group of 31 traditional banks operating in Pakistan, has signed off on developing a blockchain-based Know Your Customer (KYC) platform, reports Cointelegraph.

On March 2, the PBA signed the project contract to develop Pakistan’s first blockchain-based national eKYC banking platform, as reported by the Daily Times. The move aims to strengthen Anti-Money Laundering (AML) capabilities while countering terror financing — an initiative led by the State Bank of Pakistan (SBP).

The member banks include international establishments such as the Industrial and Commercial Bank of China, Citibank and Deutsche Bank. Moreover, the blockchain platform will improve operational efficiencies, primarily aimed at improving customer experience during onboarding.

The Avanza Group has been tasked to develop the blockchain-based eKYC platform named “Consonance,” which will be used by member banks to standardise and exchange customer data via a decentralised and self-regulated network. However, the customer details will be shared based on consent — allowing banks to assess existing and new customers.

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