Advancing third party risk management through blockchain-based smart contracts: Impacts on assessment and management of money laundering in third party ecosystem

Financial institutions continue their reliance on third parties for critical operations and digitalisation efforts to support innovation and flexibility in their operations and service offerings. With the increasing dependency on third parties, financial institutions are subject to greater risk exposure; consequently, regulatory bodies across jurisdictions are enhancing and increasing supervisory oversight on financial institutions’ management of third party risks. This paper explores the adoption of blockchain-based smart contracts to enhance financial institutions’ management of third party risks, with a focus on assessment and management of money laundering. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.