Finos, the Amsterdam-based trust-tech software company, launched the blockchain tech platform this week to assist licensed Dutch trust enterprises in avoiding the misstep of onboarding companies with integrity risks. The Finos Integrity Check Platform allows companies to share integrity risk information in a safe manner. The platform’s security requirements surpass those stipulated in the recently-updated Dutch Trust law.
As there are actors who seek to take advantage of the gaps between compliance databases, and the process to root out integrity risk is slow and sensitive for errors, Finos created the platform. Here, trust companies can receive a push notification for enterprises they’re looking into that may pose integrity risks.
Risk information is shared on the platform, which reduces risk and cost duplication because each trust company will no longer need to check, update, and maintain their own proprietary integrity risk database.
George Pedra, CEO of Finos, says that the platform not only demonstrates “how trust companies can work together to combat integrity risks, but it also shows that the industry can take a technological leap to surpass the integrity risk requirements set by the new trust regulations”.
Dan Kragt, former COO and board member of TMF Group, remarked that in corporate services, being able to share information involving integrity risk is a “game changer”.
Integrity risk is of increased importance since the financial crisis, especially for regulators and trust companies, who frequently slot in as the first lines of defence. There are nearly USD 2 trillion in global illicit financial outflows, according to the Global Financial Integrity Report, which means that reducing the number of parties with integrity risk in financial systems, including the Netherlands’, can minimise the amount of illicit funds circulating around the globe and locally in the Netherlands.