This document describes an e-know your transaction (e-KYT) solution that uses automated data sorting, analytics, and a distributed ledger to help financial institutions comply with regulations regarding financial crime and anti-money laundering. The solution allows storage of payment attributes and documents in an append-only database, uses tokenization and indexing to manage transaction data, and provides an auditing trail. It aims to automate and simplify financial crime compliance checks, increasing transparency while meeting data protection requirements.

1. e-know your transaction (e-KYT)
solution for financial crime compliance
Detection of
financial crime
and insufficient
AML technology
Long
transaction
processing time
and tedious
process
Discrepancies in
documentation
because of paper-
based
documentation
Challenges faced by institutions
Automated data sorting and analytics
Classify data and
log the results in
a distributed
ledger
Monitor and track
data to provide
meaningful
insights
AI-enabled
data
governance
Distributed
public key
infrastructure
Know your
Transaction
(KYT)
Lean
application
stack, which
minimizes the
IT cost required
to scale
Context:
A global bank facing issues with financial
crime compliance was seeking a solution
for automating, simplifying and hastening
its data governance process and data
protection.
Solution configuration:
• Append-only database, allowing the
storage of payment attributes and
related documents
• Tokenization and indexation engine
managing transaction documents and
attributes
• Auditing trail — digital stamp on
events for internal auditors and
regulators
• Enabling integration with banks
channels — web portals and mobile
apps
• Validating information to be sent
when requesting restricted
information
• Payment screening system connector
to automatically request and retrieve
Case study
Client impact:
• Automate and control processing of
both sent and received requests for
information of payments
• Increase transparency of the purpose of
transactions with controlled sharing of
supporting documents and KYC
information
• Enable auditability of payment
processing and compliance checks with
immutability and irrefutability supported
by distributed ledger technology
Leading interfaces and technology capabilities
Comply with
data protection
regulations
Eradicating
manual and
repetitive
work prone to
human error
Financial crime
compliance
Connect your
operational
databases to
Serra via
RESTful APIs.
Implement
configurable policies
for information
exchange.
Track and manage
transaction
information with
tokens — globally
unique identifiers.
Operational
database
Operational
database
Platform Platform
Information
ValueSending
bank
Sending
bank
ConsensusDistributed
ledger
Distributed
ledger
Varun Mittal
Global Emerging Markets
FinTech lead
varun.mittal@sg.ey.com
Contact us
FinTech Hub
www.ey.com/sg/FinTechHub