Drug Barons, Rogue States and Terror Groups Use Banks

Scathing reports by regulators have accused traditional banks of inadvertently helping "Drug kingpins and rogue nations" - enabling them to commit money laundering, make questionable transfers and evade economic sanctions and taxes.

The Ivy Network says the know-your-customer and know-your -transaction checks on its platform have the potential to be better than what banks currently use, speeding up transactions without increasing costs or reducing transparency.

Online and mobile banking, automated currency conversions and an emphasis on the same-day clearance of transactions have been great news for normal consumers who want simpler payments, but at times have been a haven for criminals.

Ivy Network cryptocurrencies present a "New and promising frontier for the future of digital payments" - with blockchain technology streamlining regulatory compliance and preventing major breaches for banks in future.

FYI: KYC and KYTKYC checks are often used to help both parties in a transaction ensure they comply with regulators and avoid intentional or unintentional involvement in major financial crimes such as money laundering.

For financial institutions, this normally involves verifying the identity papers of customers, checking their name against blacklists, examining their risk of committing crimes such as identity theft or money laundering, and monitoring transactions for suspicious activity.

KYT checks provide granular details on individual transactions - ensuring that ever-stringent financial and legal obligations are met.

According to the Ivy Network, it can offer 74 know your customer" data points and more than 120 "know your transaction" data points.

"Better than other digital currencies"Ivy says it offers several advantages over traditional payment networks, in addition to rival cryptocurrencies. Its infrastructure enables more KYC and KYT data to be embedded into a transaction when compared with old-fashioned financial institutions, which in theory can make it harder for illegal activities to be carried out for all parties. In an attempt to reach out to these legacy brands, the startup says its systems can be integrated into existing banking systems - and embedded into software that's used for accounting purposes.From a cryptocurrency perspective, the Ivy Network, Ivy's flagship product, believes it offers"architectural improvements" over Ripple, its closest rival.

Looking ahead to the rest of the year, it is building a live test network and working to forge key partnerships with financial institutions interested in trying out its beta product.