How Dusk Network’s Citadel Addresses Business And User Issues

The importance of regulatory compliance has increased considerably. This has directly impacted the cost of staying compliant, which has become an expensive and, at times, inefficient affair.

Dusk Network’s Citadel KYC and AML solution helps companies by removing the burden of protecting, managing, and verifying data through the use of zero-knowledge proofs (ZKPs)

The Compliance Cost

The compliance cost refers to the total cost incurred by a firm to comply with applicable regulations in its area of operations. There are a wide variety of regulations with which a company may need to comply, , such as taxes, transportation, and the environment. In the case of financial institutions some of the most important regulations include include Know Your Customer (KYC), Anti-Money Laundering (AML), and Counter Terrorism Funding (CTF) regulations. They all have a significant impact on businesses, innovations, and users.

KYC and AML are vital in preventing financial crimes such as money laundering, terrorism funding, and identity theft. However, the processes used to manage them are inefficient and expensive. Users must upload considerable amounts of personal information, while businesses have to verify, secure, and protect this data. According to estimates, the cost of verifying a single KYC profile ranges between $13 to $130, while AML is expected to cost financial institutions $37 billion in the UK alone.

Cost Of Securing Data

Gathering and checking data is not the only expense incurred by institutions. These organizations also have to spend a significant amount of resources prrotecting the security of the data once it is verified. Several estimates state that banks spend around $88 million annually on securing user data. Furthermore, most organizations end up duplicating the work, with different institutions running essentially the same background checks across the board, resulting in the same work being done twice.

This is obviously very costly and inefficient, costing more prominent institutions additional funds and man-hours while preventing smaller institutions from competing with the bigger companies due to the high cost of doing business and staying compliant.<

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Author: Amara Khatri

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