USING LEGAL ENTITY IDENTIFIER (LEI) ON BLOCKCHAIN FOR REDUCING MONEY LAUNDERING RISKS AT FINANCIAL INSTITUTIONS

Authors

  • Makhmud Makhmudov Master student, Estonian Entrepreneurship University of Applied Sciences Mainor, Enterprise Strategic Management

DOI:

https://doi.org/10.17770/acj.v1i93.6733

Keywords:

LEI, blockchain, anti-money laundering, risk assessment, risk management

Abstract

The increasing use of blockchain technology nowadays can play a key role in using the decentralized network as a standard database for the unified and secured registry, through which financial institutions can conduct a relevant customer due to diligence measures and business transactions by verifying organizations’ Legal Entity Identifier (LEI) codes, self-sovereign identifiers managed by the Global Legal Entity Identifier Foundation (GLEIF). With proper implementation, this solution can be applied to blockchain networks, offering the additional advantage of quality control and detailed business analysis. Thus, by giving financial institutions the benefit of interacting with legal entities that have proved their reputation and, therefore, by reducing the money laundering risk at financial institutions, blockchain technologies now could reach global standardization and acceptance by financial institutions worldwide.

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Author Biography

  • Makhmud Makhmudov, Master student, Estonian Entrepreneurship University of Applied Sciences Mainor, Enterprise Strategic Management
    Board Member of LEIpapa OÜ

References

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Published

08.01.2024

Issue

Section

Sub-Branch of Criminal Law

How to Cite

Makhmudov, M. (2024). USING LEGAL ENTITY IDENTIFIER (LEI) ON BLOCKCHAIN FOR REDUCING MONEY LAUNDERING RISKS AT FINANCIAL INSTITUTIONS. Administrative and Criminal Justice, 1(93), 29-35. https://doi.org/10.17770/acj.v1i93.6733