Risk Expert Canvass Use Blockchain to Curb Money Laundering

Nume Ekeghe

The Head of Risk and Compliance, eTranzact International Plc, Edward Onyenweaku, has advocated the use of blockchain technology in the financial system to improve transparency and eliminate money laundering.

He noted that blockchain technology has the ability to real-time data on transactions and can warehouse an immense history of past transactions, which would aid and identifying money laundering faster.

He made the call during a panel session tagged, ‘The Growing Threat of Money Laundering in the Financial Sector Know Your Customer (KYC) and Anti-Money Laundering (AML) as a Disabler’ at the 2023 edition of AfricaNXT conference in Lagos. 

Onyenweaku also noted that blockchain technology increases the level of trust, security, transparency, and traceability, and security of shared data.

He added that blockchain automates the process of fraud detection with the help of built-in algorithms.

According to him, transactions are continuously monitored as alerts of any suspicious activities are created.

He said: “Blockchain maintains a complete history of past transactions within the network, which means that the user can track the data with full transparency. It also supports compliance automation by providing clean, accessible, real-time data, instead of asking people and third parties information on reviewers and auditors can verify transactions on blockchain records instantly, without contacting intermediaries.”