Title: Banking's new frontier: overcoming anti-money laundering challenges with innovative technology

Authors: Abhishek Thommandru; Benarji Chakka

Addresses: University of Religions and Denominations, Pardisan, Imam Sadiq Blvd., The Beginning of Molavi Blvd., Qom, Iran ' VSL, VIT AP University, Andhra Pradesh, India

Abstract: Emerging technology can help in mitigating money laundering and other financial crimes. Blockchain is considered one of the world's best-known emerging technologies. It can change many processes, payments between peer-to-peer, trade agreements and reducing compliance cost. The banking sector is identified as the main means for laundering illicit money, banks generally have access to both banking mechanism and legal authority to make decisions. Money launderers and those financing terrorism are conveniently accessing financial institutions and making their profitable channel of loopholes in its mechanism like manipulating know-your-customer (KYC). To bridge this gap this current paper focuses on issues of compliance and anti-money laundering policies in the banking sector by using blockchain; the paper keenly focuses on KYC manipulation and the financial burden on banks for anti-money laundering (AML) compliance policies. This work examines the fault lines in the current financial system followed by regulators and questions how better these gaps could be remedied. This research uniquely relates to the capability of blockchain technology to bring banking systems with recalibrated mode of compliances polices.

Keywords: blockchain; money laundering; AML compliance; banking laws; KYC.

DOI: 10.1504/IJIPM.2024.139658

International Journal of Intellectual Property Management, 2024 Vol.14 No.4, pp.325 - 341

Received: 18 Nov 2022
Accepted: 19 Feb 2023
Published online: 05 Jul 2024 *

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