The Future of Financial Compliance Supported by Blockchain

In an era where financial crimes like money laundering and terrorist financing pose significant threats to global security, innovative solutions are adding value as significant tools. One such solution is the goAML platform, a comprehensive Anti-Money Laundering (AML) software developed by the United Nations Office on Drugs and Crime (UNODC). This system empowers Financial Intelligence Units (FIUs) with the tools necessary to collect, manage, analyze, and exchange financial data related to suspicious activities. The effectiveness of compliance software can be significantly enhanced, providing a robust framework for secure, transparent, and efficient data exchange.

The Role of goAML 5.0 in Combating Financial Crimes

On 9 July, a landmark release of goAML was published, introducing version 5.0, UNODC's Next Generation solution for Anti-Money Laundering and Countering Terrorist Financing. This latest release marks a major milestone for the project, offering Financial Intelligence Centres worldwide more advanced technologies for fighting financial crime. goAML 5.0 is the result of hard work and intensive collaboration between FIUs and UNODC, showcasing the power of global partnerships.

Notable Features of goAML 5.0

• Cryptocurrency Support: With the rise of virtual assets as a popular method for money laundering, goAML 5.0 now includes cryptocurrency support, allowing the reporting and processing of transactions involving digital currencies.
• Hybrid Reporting and Full Customisation: This feature enables the combination of transaction and activity reporting in a single report, with flexible options for including persons, entities, or accounts.
• Integration with Egmont Secure Web: FIUs using goAML can now export and import information to each other, enhancing international cooperation and data sharing.
• Accessible Web Interface: The new interface ensures that the reporting community of over 120,000 users can operate without restrictions in their daily tasks.
• Artificial Intelligence Features: goAML 5.0 introduces Natural Language Processing (NLP) and Optical Character Recognition (OCR) to ingest unstructured data, increasing automation and efficiency.
• Expanded Reporting Capabilities: The addition of 130+ new fields and virtually unlimited reporting possibilities empower FIUs to capture more detailed and comprehensive data.

goAML 5.0 is already deployed in close to 60 countries, where it processes over 300,000 transactions daily, contributing to a global total of one billion transactions.

The Backbone of Secure and Decentralized Transactions

Core Blockchain brings a new dimension to AML systems with its fast, secure, and decentralized network. Its key features make it an ideal platform for transmitting sensitive financial information:

• Security and Decentralization: Core Blockchain ensures that data transmitted through its network is secure and immutable. The decentralized nature of the blockchain prevents unauthorized access and tampering.
• No PoS system: Core and its ecosystem leverage proofs that work with contributions to computing; this is a well-proven concept for years. The era of Blockchain started with it, and we have improved it to be more efficient.
• Speed: Transactions on Core Blockchain are verified approximately every seven seconds, making it possible to transmit information quickly without sacrificing security.
• Offline Capabilities: With 0G (SMS, MMS) connectivity, Core Blockchain can operate even in environments without traditional internet access, ensuring that critical data can be transmitted regardless of infrastructure limitations.
• Layer-1 applications: Applications built on the Core network, such as CorePass.
• PayTo: Native support of PayTo protocol.
• ICAN: ICAN addresses.
• Oracles: Built Oracles, which connect current financial and compliance applications. Like XmlGoaml oracle.
• KYX: KYT (know your transaction), KYP (know your transaction partner), KYC on demand.

These features make Core Blockchain a powerful tool, enabling the secure and efficient transmission of financial data, even under challenging conditions.

Enhancing Compliance Through Verified User Information

CorePass, a Layer-1 application on the Core Blockchain, adds another layer of security and compliance to the AML process. CorePass allows users to provide verified information through a system that prioritizes user consent and privacy. This capability is crucial for Know Your Customer (KYC), Know Your Customer's Customer (KYCC), and Know Your Business (KYB) processes, which are central to AML compliance.

• KYC and KYCC: CorePass ensures that the identities of individuals and entities involved in financial transactions are verified, reducing the risk of fraud and money laundering.
• Beneficial Ownership: Through CorePass, FIUs can access verified information about the beneficial owners of businesses, providing greater transparency and accountability.
• Risk Assessment and Financial Audit Trails: CorePass can generate comprehensive audit trails, making it easier for FIUs to track and assess the risk associated with financial transactions.

A Comprehensive Compliance Ecosystem

The integration of Core Blockchain and CorePass with goAML 5.0 creates a powerful compliance ecosystem that meets the highest standards of security, transparency, and efficiency. This integration supports various AML processes, including:

• Secure Information Transmission: Core Blockchain ensures that all data exchanged within the goAML system is secure and resistant to tampering.
• Advanced Compliance Tools: CorePass provides verified, user-consented information, enhancing the accuracy and reliability of KYC, KYCC, and KYB processes.
• Compliance Oracles: Core Labs offers XmlGoaml, a .NET project designed to process XML data aligned with goAML XSD standards. This tool enables seamless integration between Core Blockchain and the goAML environment, ensuring compliance with global AML regulations.

The Future of AML with Core Blockchain and goAML 5.0

The financial system is undergoing a transformation, with digital currencies, programmable tokens, and FIAT bridges becoming increasingly prominent.

You should follow few interesting aspects:

• Digital money / CBDC
• Stable programmable tokens (not coins)
• FIAT bridges into digital ecosystem
• Compliance oracles

By basing your ecosystem or Dapps on Core Blockchain's decentralized architecture and CorePass's verified information system, you can offer an unparalleled level of security, efficiency, and on-demand compliance. This innovative approach not only contributing to global standards, but keep your data safe and full decentralized and anonymous.