A distributed Know Your Customer (KYC) platform is a centralized or federated digital infrastructure model that enables customer identification in the financial sector based on uniform standards. This approach eliminates the repetitive and resource-intensive KYC checks of individual financial institutions and allows for the secure sharing of collected and verified customer information with other authorized participants.

The platform securely stores data such as identity documents, biometrics, address verification, and compliance metrics, and is based on the “once-only” principle. Data security and integrity are protected through strong encryption, user consent mechanisms, and strict access controls. More advanced solutions also support functionalities such as PEP checks, sanctions screening, and AML risk scoring.

The distributed KYC model creates high efficiency in the financial ecosystem in terms of simplifying KYC processes, reducing transaction costs, minimizing fraud risk, and enhancing regulatory compliance. This approach, which has been successfully implemented in countries such as India, UAE, Singapore, and Bahrain, is driving the formation of a more secure, connected, and innovative digital financial infrastructure.