The Financial Services Regulatory Authority, FSRA, of the Abu Dhabi Global Market, ADGM, today announced the initiation and development of an electronic-Know-Your-Customer (e-KYC) utility in close collaboration with a key team of the UAE’s largest financial institutions.
This initiative follows the first Regional Regulators’ Roundtable for MENA regulators hosted by ADGM at its FinTech Abu Dhabi Festival in October 2017 and forms part of an inclusive programme of ADGM’s institutional-focused projects for 2018.
An industry consortium, comprising Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Al Ansari Exchange, Al Fardan Exchange, First Abu Dhabi Bank, UAE Exchange and ADGM, will develop a proof-of-concept to decide the governance framework and the functional requirements of the e-KYC utility. Distributed Ledger Technologies are being considered to underpin core functionality within the platform.
Richard Teng, CEO of the FSRA of ADGM said, "The immensely positive industry response reveals how seriously the region takes robust KYC and the material impact of ‘RegTech’ technologies in addressing industry challenges. Banks and financial institutions are seeking more ways to meet KYC and AML requirements and standards. With increased deployment of technology, such as blockchain for KYC and the efficient management of digital identities, greater efficiency and cost-effectiveness can be achieved."
"The combined expertise and reach of the consortium means it will be able to deliver real benefits to the UAE’s financial services sector and cement Abu Dhabi’s reputation as a leading global financial hub. We look forward to delivering meaningful results together in the KYC space," he added.