Over 80 Japanese banks plan to join JPMorgan’s blockchain payments network

More than 80 banks in Japan have shown interest in joining JPMorgan’s blockchain payments platform, the Interbank Information Network (IIN).

Daizaburo Sanai, an executive director at JPMorgan, told Bloomberg in an interview published Tuesday that the number is highest from any single country on the network, which currently has over 360 banks worldwide.

Sanai said IIN may help Japanese banks combat money laundering risks as the network makes the screening of cash recipients “faster and more efficient.”

Japanese banks have been under pressure to strengthen their anti-money laundering measures since the Financial Action Task Force (FATF) found deficiencies in the country in 2014. Last month, the FATF reportedly finished its latest on-site inspection of Japan and plans to announce the results next year.

Tokyo-based Sumitomo Mitsui Trust Bank is one of the banks that have signed a letter of intent to join IIN, per the report. Takashi Endo, a treasury operations department officer at Sumitomo said IIN could help minimize delays caused by inquiries between banks and in turn help with “quick collaboration with law enforcement authorities, which is an effective way” to fight money laundering.

JPMorgan first launched its IIN network in 2017, which allows member banks to exchange information related to international payments on JPMorgan’s native blockchain platform Quorum. Some of the notable banks on the network include Deutsche Bank, Royal Bank of Canada and Australia and New Zealand (ANZ) Banking Group, among others.

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Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.