Blockchain-based distributed compliance in multinational corporations’ cross-border intercompany transactions: a new model for distributed compliance across subsidiaries in different jurisdictions

Wenbin Zhang*, Yuan Yuan, Yanyan Hu, Karthik Nandakumar, Anuj Chopra, Sam Sim, Angelo De Caro

*Corresponding author for this work

Research output: Chapter in Book or Report/Conference proceedingConference Proceedingpeer-review

19 Citations (Scopus)

Abstract

Multinational Corporations (MNCs) have been facing increasing challenges of compliance and audit in their complex crisscrossing intercompany transactions which are subject to various regulations of across various jurisdictions in its global network. In this paper, we investigate these challenges and apply Blockchain-based distributed ledger technology to address them. We propose a Blockchain-based compliance model and then build a Blockchain-based distributed compliance solution to enable automatic distributed compliance enforcement for an MNC’s cross-border intercompany transactions across all Jurisdictions of the MNC’s network. This solution can help an MNC reduce the risk of compliance and audit, and enhance the capability of responding to various audits efficiently even after many years, thus improve the trust relationship and reputation with various auditors.

Original languageEnglish
Title of host publicationAdvances in Information and Communication Networks - Proceedings of the 2018 Future of Information and Communication Conference FICC, Vol. 2
EditorsRahul Bhatia, Supriya Kapoor, Kohei Arai
PublisherSpringer Verlag
Pages304-320
Number of pages17
ISBN (Print)9783030034047
DOIs
Publication statusPublished - 2019
Externally publishedYes
EventFuture of Information and Communication Conference, FICC 2018 - Singapore, Singapore
Duration: 5 Apr 20186 Apr 2018

Publication series

NameAdvances in Intelligent Systems and Computing
Volume887
ISSN (Print)2194-5357

Conference

ConferenceFuture of Information and Communication Conference, FICC 2018
Country/TerritorySingapore
CitySingapore
Period5/04/186/04/18

Keywords

  • Audit
  • Blockchain
  • Compliance
  • Distributed ledger technology
  • Documentation
  • Intercompany transaction
  • Multinational corporation
  • Transfer pricing

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