So much is talked about Blockchain technology in 2018. Blockchain is a new technology still it is not used extensively in the investment migration industry. By 2025, all companies will fully move to deploying blockchain in corporate infrastructure and businesses that dont adapt to the blockchain will be the thing of the past.
Blockchain soon to play a key role with due diligence and KYC data shared between countries running CBI/RBI programs dealing with high risk applicants. The CBI/RBI industry must not hesitate to deploy new emerging technologies, when it comes to Due diligence, KYC/AML practises.
A blockchain is a distributed public ledger of transactions replicated across a decentralized network. Once data is stored in blockchain, it is immutable, cannot be duplicated or faked. It is for these reasons blockchain is so popular. Blockchain updates data in real time syncing the ledger data across nodes.
Blockchain can hold any digital assets, such as tokens, real estate, documents etc. across several computers(nodes) and is failsafe, should one node crash, copies are available and served by other nodes. Since blockchain is a public ledger, sensitive personal information on blockchain must be encrypted and can be only viewed between two parties. Data in the blockchain is encrypted to using public key and decrypted using a private key. The public key is shared across all parties.
All Citizenship by investment Units (CIU) can share data of citizenship applications between each other in blockchain available to other CIU’s . The blockchain data is only available to CIU’s and encrypted to public. For example, CIU2 encrypts the data and sends public key to CIU3 and CIU3 decrypts the data using its own private key and CIU2 public key. Sharing the data on blockchain cuts costs and saves time for CIU’s on crosschecking for applicants due diligence and KYC information. For example, if a citizenship application is refused by one country, it is automatically refused by other countries instantly.
CIU’s can closely work with third party due diligence companies sharing the customer data on blockchain cutting delays and faster application processing times.
Malta’s gold standard due diligence practise is considered to be one of the best in the world for vetting applicants with five levels of risk matrix across seven categories. On May 29, CEO of Malta Individual Investor Programme, announced Malta is planning to launch a platform for KYC on blockchain technology in the near future.
Will all the other CIU’s in the Caribbean and other countries, follow Malta’s lead in blockchain innovation?
Blockchain will help Governments root out corruption, and help countries evolve faster.
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