We at Initio, went to Moscow to present our vision about How Blockchain can support businesses to be compliant with these regulations? We provided leadership insights and global best market practices to answer to this major question by focusing on the 3 hot topics in EU: GDPR, MiFID and AML. Find out more about this subject in our WBC Summit Moscow slides.

2. When Regulatory and Compliance meet Blockchain
« Focus on EU area: Where are we going right now? … »

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Blockchain in a nutshell
« The Blockchain is an immutable distributed ledger of financial transactions »
Decentralized
ledger
Network of
nodes
Robustness of the
system
Cannot be
controlled by any
single person
Transparency
through public data

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Top 3 of the EU current regulatory hot topics
« Focus on GDPR, MiFID & AML regulations »
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5. Dealing with the EU Data Privacy Constraints: Focus on GDPR
« How can Blockchain be a way to achieve GDPR compliance? »
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Explicit data protection “Rights” driving data protection rules
Mandatory notification requirement in case of Data Breach
Privacy by design & default: a tailor-made solution is required
The European Union Residents are now identified as the ultimate Data Owners
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Requirement to appoint a Data Protection Officer (DPO)
Need to re-adapt the current data management
environment to reach compliance;
Businesses must have the capabilities to report
how they collect/process personal data ;
Data must be portable, forgettable and structured
in a clear way;
Fines for non-compliance can be as severe as 4% of
annual global turnover or 20 millions EUR.
Impacts for the financial
services
Add an off-chain DB* next to the public Blockchain
making personal data separated from hashed data;
Anchoring data in a public Blockchain without moving
it in the Blockchain environment;
A semi-decentralized ledger combined with an interface
for consumers’ consultation as reporting solution;
An automated compliant environment will reduce risks
linked to potential future non-compliance.
Blockchain as a solution for the
financial services
* Described as a side-database liked to the Public Blockchain, where all private
data are stored in a structured, portable and forgettable way.

6. Making the market to be more transparent: Focus on MiFID
« How can Blockchain be a way to achieve MiFID compliance? »
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Strengthened Pre/Post Trade Transparency for financial transactions
Additional KPIs required to ensure investor protection and more
Attention is required to data quality and the data governance processes
The need to restore investor confidence following the financial crisis
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The “No Inducement Rule” leading research costs to be priced separately
Preparations for MiFID II are estimated to cost firms
a total of $2.1bn in 2017 (Source: Markit);
Research costs will come under growing pressure
and investment companies will need to adapt;
Additional client data requirements and real-time
accessibility are needed from other applications;
Automated pricing utilizing various external data
sources and tiered according to client bracketing.
Impacts for the financial
services
Trade shares and certain derivatives on exchanges
instead of over-the-counter by the mean of Blockchain;
Build an automated ARM reporting through Blockchain
by the use of a permissioned decentralized ledger;
Blockchain platform implemented to reduce costs of
back office functions;
Bank of Ireland (BOI) worked on a PoC displaying single
customer transactions & centralizing them in one point.
Blockchain as a solution for the
financial services
* Approved Reporting Mechanism (ARM) means a person authorised under the provisions established in
the MiFID II Directive to provide the service of reporting details of transactions to domestic competent
authorities or ESMA on behalf of investment firms (Article (4)(1)(54) MiFID II).

7. A better prevention, detection, and reporting framework: Focus on AML
« How can Blockchain be a way to achieve AML compliance? »
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Firms will have to pay higher costs in case of AML breach
Understanding emerging technologies and alternative payment & transfer services is key
Strategic choice to be done between preventive measures and customer satisfaction
Increasing complexity level of transactions leading businesses to face higher risks
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The anonymous nature of crypto-currency is raising regulators’ concerns
Businesses need to create infrastructures for cross-
channel detection of suspicious activities;
The more red flags are detected, the bigger the
inconveniences will be created to the customers;
The need to use emerging new technologies is key to
adapt to the new AML rules in an efficient way;
Lack of regulatory cross-countries regimes
convergence increase the AML directive complexity.
Impacts for the financial
services
Permissioned Blockchain as a cross-channel solution to
manage banks’ transactions in real-time;
Availability of historical record of all documents shared
and compliance activities undertaken for each client;
Tracking all participants data is a challenge that can be
thrown at the Blockchain with multiple parties;
All financial data recorded on the ledger could be easily
available to regulators and third parties entities.
Blockchain as a solution for the
financial services

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Our service offering
« Someone said disruption?! … »

9. Banking Industry
Insurance Industry
• Digital Claims Management;
• Internet Of Things (Iot);
• Fraud Detection And Risk
Prevention;
• Clearing & Settlement;
• Payments;
• Trade Finance;
• Digital Identity.
Investment Funds
• Fund Distribution;
• Tokenization;
• AML/KYC.
The footprint of our service offering
« We tailored our service offering through an industry focus approach »
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Our Consultants
« Learn more about our consultants, their main points of expertise … »

11. Our key contacts
« We provide you our best talents to support your biggest challenges »
Senior Consultant & Blockchain Leader
Initio Luxembourg/Brussels
Sami El Bouamri
Sami provides advisory services to a large portfolio of clients from various industries such as Banks and Insurance
companies and Investment funds (Hedge funds, PE/RE funds). His experience in Audit, Risk management and
Compliance combined with strong IT skills led him to work on various complex and multidimensional challenges.
He is supporting his clients on various aspect such as regulatory matters (Solvency II, PRIIPS, IFRS 9, UCITS V and
on other Risk Transparency reportings) on one side, and on the other side Blockchain (DLT), Machine learning/AI,
matters. His diversified experiences make him a trusted partner for your business.
Senior Manager
Initio Brussels
Brice Boland
Brice is a Senior Manager who, thanks to his managerial skills and dedication, has dealt with a strong client
portfolio comprised of clients from various industries such as Banks, Insurances companies and Investment
Funds.
Before joining Initio Brussels, he worked in audit and advisory for companies such as SME, Groups & Financial
Holding - construction, real-estate, energy, retail, insurance clients. This allowed him to gain a deeper expertise in
-IFRS & BEGAAP accounting standards; External financial audit techniques of industrial companies. His diversified
experiences make him a trusted partner for your business.
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Contact information
« Feel free to contact us if you have any questions … »
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13. Contact information
« Feel free to contact us if you have any questions … »
BRUSSELS
Boulevard Brand Whitlock, 60
Brussels, 1200 Belgium
+32 (0)2 669 77 44
brussels@initio.eu
LUXEMBOURG
153-155 rue du Kiem - Entrée D
8030, Strassen Luxembourg
+352 (0) 27 72 39
luxembourg@initio.eu
GENEVA
Rue du Commerce, 4
Geneva, 1204 Geneva
+41 (0) 22 591 79 21
geneve@initio.eu
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