Supervisors Symposium

DLT – ENABL ING THE FUTURE OF REGULATORY SUPERV I S ION AND COMPL IANCE

● DLT also provides an opportunity for disintermediation of compliance activities. Entries utilizing DLT are designed to be immutable, verifiable and traceable, providing an accurate and uniform audit trail, including records of procedures and tasks undertaken for each client, as well as documents shared, providing a single source of the truth through DLT, but owned centrally by the governing entity. ● Blockchain technologies provide secure, real ‐ time access to records and data, eliminating reactive analysis components that characterize current processes. ● DLT may also provide value ‐ added opportunities through process automation, leading to fewer compliance errors. Combined with the application of ‘smart contracts’, DLT technology could, for instance, block transactions on behalf of clients unless adequate KYC completeness has been attained.

27

● Utilization of DLT in various financial systems—the intersection of cryptocurrency and the traditional financial system. ● Consumer protection. ● Financial stability. ● Public security (i.e., countering money laundering, the financing of terrorism, and other illegal activities).

Supervisory and Compl iance Considerat ions

2 8