Validating identity is a key component to compliance operations across all components of the value chain. From sourcing, manufacturing, distribution and sales, understanding and verifying the information about third-parties, partners and customers is both important and sometimes difficult.

The the Decentralized Identity Foundation notes the following initiatives:

  • How people, organizations, and devices can be identified and located without centralized systems of identifiers (e.g. email addresses)
  • Secure, encrypted, privacy-preserving storage and computation of data
  • Identifiers and names must be self-sovereign to the owning entity, a user's identity data must remain private, only accessible to the entities they allow
  • The ability to verify the claims and assertions of identities is key in establishing trust among entities on a decentralized system that lacks a centralized hierarchy

For compliance professionals, we might consider how an improved identity capability enhances our risk understanding of:

  • Cross-Border Payments
  • Settlements
  • Order-to-Cash
  • Treasury and Financing
  • Supply Chain