Currently, 365 banks all over the world have officially signed up with JP Morgan to join its blockchain-based information network for payments. The blockchain network is powered by an Ethereum variant, Quorum, which makes information-sharing for payment verification within member banks faster.
Japanese banks are seeking to use IIN due to weak money-laundering measures.
JP Morgan Chase executive director Daizaburo Sanai said that Japanese banks might be seeking to use the platform to bolster measures against money laundering as it makes the screening of cash recipients faster and more efficient. JP Morgan launched IIN in as a pilot back in 2018 and has already begun implementing it outside Japan and is planning to live in Japan as soon as next month.
Banks struggling to tackle money-laundering and terror financing.
In 2014 the International financial watchdog FATF found deficiencies in Japanese banks for tackling money laundering and terror financing. Sumitomo Mitsui Trust Bank Ltd treasury is among the lenders that have signed a letter of intent to join the platform. Society for Worldwide Interbank Financial Telecommunication (SWIFT) has also developed a new system to accelerate transaction processing.
Earlier, JP Morgan collaborated with the central bank of Singapore (MAS) to develop a blockchain prototype for multi-currency, cross-border payments.