Blockchain Empowerment in Sanctions and AML Compliance: A Transparent Approach |
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| © 2024 by IJCTT Journal | ||
| Volume-72 Issue-5 |
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| Year of Publication : 2024 | ||
| Authors : Varun Jain, Anandaganesh Balakrishnan, Pradeep Chintale, Sivanagaraju Gadiparthi, Madhavi Najana | ||
| DOI : 10.14445/22312803/IJCTT-V72I5P102 | ||
How to Cite?
Varun Jain, Anandaganesh Balakrishnan, Pradeep Chintale, Sivanagaraju Gadiparthi, Madhavi Najana, "Blockchain Empowerment in Sanctions and AML Compliance: A Transparent Approach," International Journal of Computer Trends and Technology, vol. 72, no. 5, pp. 1-10, 2024. Crossref, https://doi.org/10.14445/22312803/IJCTT-V72I5P102
Abstract
The global financial system is increasingly grappling with the complexities of sanctions and Anti-Money Laundering (AML) compliance, necessitating innovative solutions to enhance transparency and enforcement. This paper explores the transformative potential of blockchain and digital asset currencies in reshaping regulatory compliance frameworks. By leveraging the intrinsic properties of blockchain technology—decentralization, immutability, and transparency—we illustrate how it can serve as a pivotal tool in the identification and prevention of financial crimes, including sanctions evasion and terrorist financing. The research delves into real-world applications and case studies, demonstrating how immutable ledger technology not only enhances the traceability of transactions but also enables the automation of compliance processes through smart contracts. Furthermore, the paper discusses the challenges and implications of integrating blockchain solutions within existing legal and regulatory frameworks, providing a balanced view of the operational, legal, and privacy concerns. The findings suggest that while blockchain technology presents a promising avenue for enhancing regulatory compliance, its full potential can only be realized through collaborative efforts among regulators, industry stakeholders, and technology providers to address the challenges above.
Keywords
Blockchain Technology, Regulatory Compliance, Anti-Money Laundering (AML), Sanctions Enforcement, Decentralization, Immutability, Financial Transparency, Smart Contracts, Terrorist Financing Prevention, Legal and Regulatory Frameworks.
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