Block-Chain Can Fight Money Laundering in Downtimes?

According to Simply Wall Street, The World Bank has lowered its forecast for global GDP growth for 2022 to 2.9% from 5.7%. A long way from a recession -however, this indicates many countries will face a recession sooner than expected.

How Block Chain Fights Money Laundering in Downtimes

Frequently Asked Questions(FAQ): “Block-Chain and Money Laundering”

  • What are examples of money laundering?
  • What is considered money laundering?
  • What are the 3 levels of money laundering?
  • What is money laundering and why is it illegal?
  • Why is it important to combat money laundering?
  • What are some ways in which real estate is used for money laundering?

According to the United Nations Office on Drugs and Crime, money laundering is “The process of converting the proceeds of crime into seemingly legitimate assets is known as ‘laundering.” In other words, it’s when criminals clean dirty money by moving it around until it appears to be from a legitimate source.

Investing in businesses, real estate, or even art is often done.

While money laundering has always been a problem, it tends to increase during economic downturns and inflationary times. People who have lost money in the stock market or elsewhere are more likely to turn to crime.

Boards Need To Be Visual Of Fraud From Internal Disgruntled Employees and Supply Chains

According to the Association of Certified Fraud Examiners, “internal organizational fraud” is When a worker or someone with access to corporate information breaks the law. It’s known as fraud. Embezzlement, kickbacks, and bribery.

“Supply chain fraud” is when someone in the supply chain – like a vendor or supplier – commits fraud. It can include counterfeit goods, false invoicing, and product substitution.

Boards must be aware of both types of fraud and have procedures to prevent them. Employees should complete mandatory AML and Fraud detection training. It will prove to create a culture of reporting anti-money laundry in the business lines.

Employees should be able to report suspicious behavior on the Ethics Hotline. The Audit Committee Chairs need to monitor what types of behavior were reported in the Ethics Hotlines. And supply chain partners must go through rigorous checks.

What is Block Chain – In Supply Chains ESG?

According to the Australian Institute of Company Directors, This Startup uses Blockchain to track the Supply Chain of Diamonds.

Leanne Kemp, CEO of the Everledger, “I’m here to rebuild trust and accountability in global supply chains, and I’m going to do it with blockchain technology, which most people still struggle with. The hype frequently overshadows the effectiveness of Blockchain for verifying a wide range of transactions. With a blockchain she called the technology’s “trusted ledger” foundation, Kemp saw an opportunity to apply her expertise in the jewelry.

The firm developed the first system to document the path diamonds travel from mine to owner along the supply chain, a digital ledger that is globally accessible and protected. It also bested De Beers’ efforts to launch the first Blockchain for the Kimberly Process, a worldwide diamond certification designed to increase transparency and prevent ” “blood diamonds.” 

Individuals and organizations with connections in the military (diamonds mined in a war zone and sold to finance insurgent or warlord armies)

The World Economic Forum (WEF) Technology Pioneers Cohort named Everledger in 2018, along with two Australian-based firms.

In March 2018, the firm had grown to 40 employees across five countries and US$10.4 million in Series A funding, including Fidelity Investments.

Numbers regarding the Blockchain 

Money Laundering in Downtimes

A blockchain is a decentralized ledger (or database) that keeps track of transactions—shared among authorized network members. The block that contains this transaction is added to the chain.

A partnership is linked to the preceding one with a code sequence, which creates a sequenced “chain.” Each block is public, and the more information it contains, the more trustworthy it appears. Knowing where each component comes from can improve supply chain transparency.

Block Chain and ESG

According to the World Economic Forum, How can blockchain principles help improve ESG systems? 

The limitations of ESG ratings are similar to those seen in international coordination. When we attempt to tackle major global issues without the aid of one business or nation, coordination is often tricky, and global operations suffer from the tragedy of the commons.

Blockchain can be a source of inspiration for Environmental and Social Governance (ESG) systems. These principles allow any individual to participate and ensure that the shared vision is preserved at every step, regardless of whether Ethereum undergoes (and will continue to)

GBAC – Global Board Advisors Corp Recommends – Chairs Be Mindful.   

  1. From the ESG Materiality Assessment results as a baseline and focus on what matters to you, your company, and your enterprise in your industry, that’s the main point to take from here.
  2. With fraud on the rise and barriers to poor quality data, at a point in time. The Board must challenge management to get accurate and implement internal controls around contracts with Blockchain.
  3. It would be best if you experimented as an enterprise. You must cut across silos and data in legacy systems to detect potential fraud, anti-money laundry, and counterfeiting in with supply chains in the parties’
  4. Suppliers and Third parties are operating in low economic COVID turnaround countries. Especially in countries where there might be corruption and bribery as the norm, you need to know how you work with supply chains. After that, maybe implement blockchains in other geographic locations, or another Smart idea is blockchain contracts. 
  5. Boards need to inquire how we can experiment with Block Chain and ensure that the burden of detecting fraud is a manual process. 
  6. Maturing our Intellectual Property to an automated process so counterfeit transactions can be easily discovered and detected. These are some of the things that you can work with Blockchain.

According to the Forbes article The Next Wave Of Automation: ESG Data.

  • The concerns of the new ESG are married by obstacles — imperfect or incomplete data, onerous administration layers, and time-consuming manual tasks.
  • Blockchain provides a solid foundation for accurate data throughout supply chain management in ESG measurement scenarios. It’s not just about the Blockchain. Its actual value lies in its ability to maintain unchangeable, verifiable records of data and events.

Block Chain and Money Laundering 

So how does Blockchain come into play? As you may know, a blockchain is a digital ledger that records transactions. Blockchain can help detect anti-money laundry threats from internal disgruntled employees and supply chains by making the transaction more transparent, secure, and accurate delegation of parties involved.

According to Insider’s Intelligence, The growing list of applications and use cases of blockchain technology in business and life, Blockchain’s encryption, which is so essential to the technology, helps immensely in detecting money laundering. The technology’s foundation allows for record-keeping.

What Boards Need to Focus On

According to Deloitte. What the boards need to know about blockchain technology (Main points paraphrased below)

  1. The Board may also assist management in evaluating the most beneficial applications for this new disruptive technology and new risks and threats that may result from its use.
  2. Boards can analyze the following questions while overseeing a blockchain’s implementation:
  • The skills needed to manage, implement, and maintain blockchain technology. For the Board, it will be critical to understand how a blockchain works to provide appropriate oversight. 
  • The Board should also be confident that the management team has a thorough knowledge of Blockchain. , critical in (1) identifying the most advantageous use of the technology; (2) developing internal controls that promote the effective implementation and operation of a blockchain; (3) The function of blockchain governance is to ensure that the community can meet, extend and improve its capabilities promptly while maintaining positive and sustainable growth.

According to the Singapore Institute of Directors, WILL WE NEED BOARDS IN THE FUTURE ECONOMY?

The business model of the new firm

Blockchain technology, for example, holds the potential to transform how companies govern in the new economy. Distributed ledger technology (i.e., Blockchain

Blockchain may replace the current system of large, hierarchical, centralized organizations with smaller, more distributed entities.

Is AI for Directors the same thing as machine learning?

It’s conceivable that the Board of the future will benefit from an AI function or a bot that can keep up with any boardroom debate, contextual.

Indeed, boards are necessary for the new economy, despite their different goals. While Blockchain and other technological advancements will alter its function

Block Chain Use Cases for Boards


  • Concerns about data security linked to decentralized and remote voting are solved by blockchain technology. 
  • Companies might be able to provide better resolutions in advance and answer shareholders’ inquiries electronically during a consultation period, allowing for more face-to-face interaction. 
  • Records would be unchangeable and indisputable, resulting in increased transparency and real-time decision-making.

Blockchain technology can positively impact corporate social responsibility (CSR). 

Here are several ways in which Blockchain can help improve CSR practices: 

  1. Blockchain can help ensure that CSR processes are transparent and accountable.
  2. Blockchain technology can help improve corporate social responsibility (CSR). 
  3. It can help reduce the risk of unethical behavior by participants.
  4. It can help create a more efficient and effective system for collecting data on the company’s social and environmental factors and performance.
  5. It can help companies track their social and environmental impacts more effectively. 
  6. It can help whistleblowers report unethical behavior more easily. 
  7. It can help reduce corruption in supply chains. 
  8. It can create a more transparent and efficient marketplace for goods and services.
  9. There are several ways in which Blockchain technology can improve CSR initiatives. 
  10. Blockchain can help increase transparency and efficiency in CSR processes and promote trust between organizations and stakeholders.


In conclusion, that blockchain technology has the potential to influence CSR and ESG in several ways positively. A secure and transparent data-sharing platform can help organizations track and monitor their impact. Additionally, by making it easier for companies to conduct transparent transactions, Blockchain can help foster a good public image and encourage ethical behavior. Finally, by facilitating trustless transactions between parties, Blockchain could make it easier for businesses to cooperate in solving global problems.

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