80+ Japanese banks will join JPMorgan’s payment blockchain network

More than 80 banks in Japan have expressed interest in the JPMorgan blockchain platform, Interbank Information Network (IIN).

Daizaburo Sanai, Executivedirector of JPMorgan, told Bloomberg that IIN will help Japanese banks reduce the risks associated with money laundering because the network makes recipient verification “much faster and more efficient.”

Formerly the Financial Action Task ForceAnti-Money Laundering Task Force (FATF) has pointed out shortcomings in the country's banking system, prompting Japanese banks to strengthen anti-money laundering measures. Last month, the FATF reportedly completed its latest on-site inspection in Japan and plans to announce the results next year.

Tokyo Sumitomo Mitsui Trust Bank isone of the banks that signed an agreement of intent to join IIN. Takashi Endo, an employee at Sumitomo, said the IIN will minimize delay times for requests between banks, and in turn will help law enforcement agencies quickly obtain needed materials.

JPMorgan's IIN was first launched in 2017year to allow member banks to share financial information on Quorum's proprietary blockchain platform. Among the well-known banks participating in the network are names such as Deutsche Bank, Royal Bank of Canada and others.