Financial regulators and institutions in the UAE are teaming up for exploring blockchain and other cutting-edge technologies for an electronic-Know-Your-Customer (e-KYC) utility.

The Abu Dhabi Global Market’s (ADGM) Financial Services Regulatory Authority (FSRA) has announced the initiation of e-KYC project in collaboration with a team of the UAE’s largest financial institutions.

In addition to ADGM, the project participants include Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Al Ansari Exchange, Al Fardan Exchange, First Abu Dhabi Bank, and UAE Exchange. They will develop a proof-of-concept to decide the governance framework and the functional requirements of the e-KYC utility.

According to the official release, distributed ledger technologies (DLTs) are being considered to underpin core functionality within the platform.

"With increased deployment of technology, such as blockchain for KYC and the efficient management of digital identities, greater efficiency and cost-effectiveness can be achieved,” Richard Teng, CEO of the FSRA of ADGM said. “The combined expertise and reach of the consortium means it will be able to deliver real benefits to the UAE’s financial services sector and cement Abu Dhabi’s reputation as a leading global financial hub. We look forward to delivering meaningful results together in the KYC space.”