Already onerous know-your-customer (KYC) rules and reporting requirements are only getting more complex and burdensome as scandals like the Panama Papers drive greater regulatory pressure. Many organizations must also follow similar AML policies. The cost to the plethora of entities and individuals in the financial industry is enormous. ChainReactor offers an elegant solution to minimizing the costs, while maximizing the efficacy of the rules.

Every KYC and AML information submission can be cross referenced by all participants in the ChainReactor blockchain.

Consider that a firm or individual doing business with a ChainReactor node participant provides evidence and submissions as required for KYC. The information is processed and stored in the participating organization’s KYC database, which forms part of the ChainReactor node. The information is stored in association with the individual’s primary identity, be that a passport number or social security number. It is also timestamped.

When the individual interacts with another organization, which is also a participant in the ChainReactor blockchain, their identity is queried for KYC compliance. If the previously submitted documents fall within the required timeframe (usually 3 months) they are cleared without having to re-submit the evidence.

In practice the individual can be prompted directly (e-mail or text message) to submit appropriate documentation from time to time at any participating organization in order to keep their KYC data up to date. Better yet, if a bank statement or a utility bill is sufficient, they can be directly submitted to the individual’s blockchain based KYC repository automatically by the bank or utility company that generate them.