Paul-Gerhard Haase (Cinfoni): Music to Regulators’ Ears
Many treasurersfind growing AML and KYC requirements a headache merely on a national level. But Paul-Gerhard Haase believes the harmony of “custom information network intelligence” or Cinfoni, of which he is the designated co-founder, can meet the need for regulatory compliant, trusted and immutable data that is repeatable across international boundaries.
“Cinfonic” Variations on a Theme
The sheer volume and complexity of anti-money laundering and “know your customer” requirements intended to prevent money laundering, white-collar crime and the financing of terrorism, have become increasingly onerous for banks. Up to now, each bank has had to have its own audit, and the largely manual research processes could often take several weeks. But two years ago, in the process of establishing an AML/KYC platform for the German market, Paul-Gerhard found, in talking to banks and treasury associations, that a “German-only approach was not sufficient.” He began the development of “customer information network intelligence” that was conceptualised as “Cinfoni.” This was because he saw its capability of growing into a system that will allow various players to contribute and collaborate on combined AML/KYC solutions in much the same way as he saw a symphony orchestra working in harmony.
“With Cinfoni we are establishing a unique, dedicated protocol for cross-border regulatory data exchanges that hasn't previously existed,” says Mr. Haase. Cinfoni allows the exchange of KYC-company data and documents among banks in a standardized and automated process. The Cinfoni protocol is flexible enough to link local initiatives with their international counterparts. For example, a Luxembourg-based corporate that wants to open a bank account with a German-based bank needs to fulfil all the Germany specific regulatory requirements. With Cinfoni, once a single regulatory reliable record has been created, the validated and verified data, including the required documents, can be forwarded to whatever banks require them, as often as they are required – even across national borders. This is made possible because the entire process of composing and distributing the records is coordinated with the national financial regulators and meets the highest security requirements.
Starting from scratch, without the hindrance of legacy protocols, Paul-Gerhard believes Cinfoni is a “game-changer.” He says that whereas legacy systems are highly centralised, Cinfoni is based on distributed ledger technology. DLTis a digital system that records transactional data in multiple places at the same time so it can be accessed on a localised basis. This means that Cinfoniahas created a cooperative, federated platform for AML/KYC requirementsas an alternative to centralised storage and access to data. Its network taps local expertise and local relationships including local regulators. Data does not have to be transmitted through a centralised hub as the information is available to all users all the time thus facilitating cross-border interoperability. Thisdelivers users regulatory compliant, trusted and immutable data that is repeatable among multiple jurisdictions. Cinfoni’s protocol, therefore, provides international solutions to the previously slow and bureaucratic process of collecting, entering and exchanging data. Itgives access to regulatory compliant KYC record production that can be flexibly adjusted to banks’ needs. This creates a dynamic standard covering data and process/workflow and opportunities for a scalable evolution for the expansion of the network and growth in the number of participants. First participants have joined the cinfoni initiative. During the ATEL winter conference Luxembourg based i-Hub announced to be a player for Luxembourg in addition to the first network node established by Arvato Financial Solutions for the German jurisdiction. There is more to come: Further international partners will follow in 2021.
Quotation: “With Cinfoni we are establishing a unique, dedicated protocol for cross-border regulatory data exchanges that hasn't previously existed.”
Paul-Gerhard Haase, Designated Founder, Cinfoni
Copyright pour le graph: Cinfoni
Copryright photo : 360Crossmedia