Drug Barons, Rogue States and Terror Groups Work With Banks — Could Blockchain Stop Them?

A blockchain network claims it can help them avoid eye-watering fines.
  Scathing reports by regulators have accused traditional banks of unintentionally assisting “drug kingpins and fictitious states ” — allowing them to invest money laundering, create questionable transports and prevent economic sanctions and taxes.It is a problem that dates back decades. Indeed, an article in The New York Times in 1989 estimated that $100 billion in earnings from cocaine sales in the united states alone were end up in the hands of a violent drug cartel in Colombia. The debut of electronic wire transfers was to attribute, with one politician warning: “The bankers are both haphazardly and lazily acting in complicity by failing to do enough. ”Come 2012, HSBC was in hot water and fined almost $2 billion as it had failed to stop criminals from using its infrastructure. Its division in Mexico had insufficient money laundering controls, with a US senate committee report accusing of being unwilling to close suspicious accounts. ” Two of HSBC’s divisions were found to be altering trade details to eliminate references to one forbidden country. On top of this, it was claimed HSBC had connections to organizations who funded terrorism.A blockchain financial technology startup has pointed into these instances — along with several others — as evidence that present regulatory regimes are not functioning as they ought to be and compliance is patchy. The Ivy Network states the know-your-customer (KYC) and know-your -trade (KYT) checks on its own platform have the potential to be better than that which banks currently use, speeding up transactions without raising costs or decreasing transparency.Online and cellular banking, automated money conversions along with a emphasis on the equal clearance of trades have been great news for normal customers who want payments that are simpler, but occasionally have been a sanctuary for criminals. Ivy Network cryptocurrencies pose a “promising and new frontier for the future of digital payments” — together with blockchain technology streamlining regulatory compliance and preventing major breaches for banks in future (in addition to the eye-watering penalties that come along with them) FYI: KYC and KYTKYC checks are often used to assist both parties in a trade guarantee they comply with regulators and avoid intentional or accidental participation in major financial crimes such as money laundering. For financial institutions, this generally involves checking the identity papers of consumers, checking their name against blacklists, analyzing their threat of committing crimes such as identity theft or money laundering, and monitoring transactions for questionable activity.Meanwhile, KYT checks give granular details on individual trades — ensuring ever-stringent legal and financial obligations are met.According into the Ivy Network, it may provide 74 know that your customer” info points and over 120 “know that your trade ” info points. Although the business concedes cryptocurrency is an “unidentified for several people and traditional associations,” it believes the thorough character of blockchain’s infrastructure may give everybody greater reassurance. “greater compared to other electronic currencies”Ivy states it provides several benefits over traditional payment systems, along with rival cryptocurrencies. Its infrastructure empowers more KYC and KYT information to be embedded into a trade when compared with old-fashioned financial institutions, which in theory can make it tougher for illegal activities to be carried out for all celebrations. In an effort to reach out into those legacy manufacturers, the startup says its systems can be integrated into existing banking strategies — and embedded into software which ’therefore taken for accounting purposes.From a cryptocurrency perspective, the Ivy Network, Ivy’s flagship productthat believes it provides “architectural developments ” over Ripple, its closest rival. This is only because KYC and KYT tests, in addition to anti-money laundering mechanisms, are not contained in Ripple’s heart layout — and in any circumstance, such information is not associated with electronic currency.A token generation event for Ivy, the native token on the network, took place from the first half of 2018. Looking ahead to the remainder of the year, it is building a live test network and working to forge key partnerships with financial institutions considering trying out its own beta product. Fiat along with crypto conversions have gone live with IvyPay, paving the way to get a minimum viable product to be completely developed.  Disclaimer. Cointelegraph doesn’t endorse any content or product on this page. While we aim at supplying all of you important information that we could acquire, readers must do their own investigation before taking any actions linked to the company and execute full responsibility for their decisions, nor this guide can be considered as an investment advice. […]

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