The electronic know your customer (e-KYC) is a system for the banking or identity provider to establish a customer identity data verification process between relying parties. Due to the efficient resource consumption and the high degree of accessibility and availability of cloud computing, most banks implement their e-KYC system on the cloud. Essentially, the security and privacy of e-KYC related documents stored in the cloud becomes the crucial issue. Existing e-KYC platforms generally rely on strong authentication and apply traditional encryption to support their security and privacy requirement. In this model, the KYC system owner encrypts the file with their host’s key and uploads it to the cloud. This method induces encryption dependency and communication and key management overheads. In this paper, we introduce a novel blockchain-based e-KYC scheme called e-KYC TrustBlock based on the public key encryption method binding with the client consent enforcement to deliver trust, security and privacy compliance. In addition, we introduce attribute-based encryption to enable the privacy preserving and fine-grained access of sensitive transactions stored in the blockchain. Finally, we conduct experiments to show that our system is efficient and scalable in practice.

https://ieeexplore.ieee.org/ielx7/6287639/6514899/09770032.pdf

Enabling Trust and Privacy-Preserving e-KYC System Using Blockchain

The electronic Know Your Customer (e-KYC) is basically a system for all the banking enterprises or for the identity providers to establish and provide a customer identity such as data verification process between agreeing parties. Nowadays, most of the banks are implementing e-KYC on cloud due to its efficient resource consumption and high degree of accessibility and availability of cloud computing. KYC is also a procedure by which banks gather information about their customers' identities and addresses. It is a regulated practice of completing due diligence on clients to verify their identity. This procedure aids in ensuring that clients are genuine and the bank's services are not being abused. The banks are in charge of completing the KYC process. In this paper, we have discussed the demerits of the process for establishing accounts and KYC may be a time-consuming, manual process that is duplicated across institutions. Financial institutions would be able to use blockchain to share KYC information, to improve compliance outcomes, efficiency, and customer service, and to avoid redundancy by gaining experience. 

Blockchain-Based Implementation on Electronic Know Your Customer (e-KYC)

The know your customer (KYC) guidelines in financial services require that institutions make an effort to verify the identity, suitability, and assess risks involved while maintaining a business relationship. The procedures fit within the broader scope of any financial institution’s Anti-Money Laundering (AML) policy. Governments around the world have digitalised this process to make it more convenient and transparent by introducing the notion of e-KYC (Electronic KYC). e-KYC provides a flexibility for the users as they might even quickly complete the on-boarding process from the comfort of their homes. However, there are a few outstanding issues, such as the lack of any global standardisation, possible fraudulent activities during the e-KYC process and other privacy concerns, that must be addressed before its full benefits can be achieved. Recently, blockchain technology (or blockchain in short) has emerged as a foundational technology with possibilities to disrupt a wide range of application domains. Understandably, it is increasingly being investigated how blockchain can be a useful tool to address these outstanding issues. Towards this aim, a number of research works have emerged in the recent years. In this article, we present a systematic literature review (SLR) of these works using the PRISMA model in order to identify and critically analyse the existing researches at the intersection of e-KYC and blockchain. Based on our study we have also identified the limitations of the existing solutions and provided future directions. 

/pdf/a-systematic-literature-review-of-blockchain-based-e-kyc-28wkikfi.pdf

A systematic literature review of blockchain-based e-KYC systems

in financial institutions, the traditional Know Your Customer (KYC) process is insecure, and costly. The adoption of disruptive technology is a necessary condition for the coming future of financial institutions. This study proposed a Hyperledger Fabric network for KYC optimization. The Performance of the proposed system was tested by using the Hyperledger Composer. The experiment results confirm that due to the strong and identity features of Hyperledger Fabric, the proposed system can speed up the KYC clearing transfers, challenge the inefficiencies that arise from duplicated conduct of similar tasks, secure data sharing, cost-effective, and ultimately bring transparency in the traditional KYC system.

Kawther A. Al-Dhlan

Papers

KYC Optimization by Blockchain Based Hyperledger Fabric Network