Shyft has launched an open and unified blockchain framework for the standardization of regulatory, compliance, and due diligence mandates for KYC and AML.
The Shyft Network’s blockchain-based system will enable users to securely obtain, store, inquire into, and work with compliance-satisfying data, in a bid to reduce costs and increase effectiveness.
It aims to provide a ‘new paradigm’ for digital identity by focusing on leveraging reputation as collateral and setting a new standard in the attestation process. The reputation network enables base layer identity anonymisation and KYC data-anchoring.
Shyft chairman Joseph Weinberg said: “In recent years, financial technology has been evolving by leaps and bounds. Unfortunately, at the risk of disruption or even catastrophic failures like terrorist financing, industry players have been struggling to keep pace with the advancements.
“Financial institutions are facing an increasing number of compliance obligations with heightened complexity and rigor, where failure to comply can result in significant legal penalties and reputational damage. The current processes used by financial institutions to handle regulatory compliance are broken and highly ineffective in stopping money laundering. Identity is being looked at in an improper manner and the industry is ready for a seismic change.”
Shyft assigns individuals and businesses with creditability scores, defining their reputation, plausibility, believability, and likelihood that they are creditable. The Credibility Score provides regulators and businesses with running compliance checks, including an indicator of each individual’s reputation without having to store sensitive personal information centrally according to the company.
Tokens are required to participate within the Shyft Ecosystem. Tokens pass between Trust Anchors for access to and knowledge of KYC checks performed on customer profiles. These customer profiles are represented by Shyft public addresses which contain a history of KYC verifications.
Shyft claims the its Reputational Merit Token (RMT) has the potential to pull the unbanked into the global economy. The RMT layer, which exists above the KYC layer on the Shyft blockchain, is intended to provide reputation to people who are unable to participate in the KYC layer; those without basic access to financial services due to regulatory restrictions.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
