Blockchain-Anchored Audit Trails for Multi-Jurisdictional Compliance in Global Capital Movement Systems
Keywords:
Blockchain, audit trails, multi-jurisdictional compliance, regulatory reporting, global capital flows, AML tracking, data lineage, distributed ledger technologyAbstract
Global financial markets make multi-jurisdictional oversight, AML enforcement, and cross-border cash flow monitoring challenging. Centralized, decentralized, and jurisdiction-specific regulatory reporting infrastructures prevent global auditability, data lineage preservation, and supervisory transparency. Global capital movement systems use blockchain-anchored audit trails for immutable, verifiable, and interoperable compliance data. Design and execution are addressed in this study. Distributed ledger technology cryptographically anchored transactional states, regulatory disclosures, and compliance attestations from many regulatory reporting platforms. Tracking AML and CTF, data provenance, and cross-regulatory reconciliation without violating data sovereignty are important. Architectural study, protocol design, and governance frameworks can balance blockchain audit trail openness, privacy, and regulatory autonomy. We observed that blockchain-anchored compliance infrastructures may increase supervisory confidence, reduce systemic risk, and scale global financial supervision.
Downloads
References
C. Regueiro, I. Seco, I. Gutiérrez-Agüero, B. Urquizu, and J. Mansell, “A blockchain-based audit trail mechanism: design and implementation,” Algorithms, vol. 14, no. 12, Art. no. 341, Nov. 2021.
H. Han, “Accounting and auditing with blockchain technology: implications for financial transparency and security,” Int. J. Accounting Inf. Syst., 2023, doi: unavailable.
M. Hasan, M. Gopinath, A. Ganesan et al., “Blockchain for audit trails in research information management systems,” Indian J. Inf. Sources Serv., vol. 15, no. 2, pp. 218–223, Jun. 2025.
Yunfan Zhang, Z. Ma, and J. Meng, “Auditing in the blockchain: a literature review,” Front. Blockchain, vol. 8, 2025, doi: unavailable.
S. Aidoo, A. Venditti, H. Döhner, and W. Liang, “The role of blockchain in AML compliance: potential applications and limitations,” unpublished 2025.
T. Tanchangya et al., “Mapping blockchain applications in FinTech: a systematic review,” Inform., vol. 16, no. 9, 2025.
“Distributed ledger technology in the financial sector – KYC/AML aspect,” IBIMA Conference Proc., Granada, Spain, 2020.
“A decentralised KYC based approach for microfinance using blockchain technology,” Cyber Security and Applications, vol. 1, 2023.
“Blockchain-based decentralized KYC verification framework for banks,” Procedia Computer Sci., vol. 215, 2022.
Anas Alqudah, “FinTech’s AML reality, 2020–2025: how digital rails enable—and deter—money laundering,” Preprints.org, Sep. 2025.
Keerthi Nelaturu, Han Du, and Duc-Phong Le, “A review of blockchain in FinTech: taxonomy, challenges, and future directions,” Cryptography, vol. 6, no. 2, Apr. 2022.
D. Kovács, “The role of blockchain-enabled audit trails,” Jpn. J. Parsed Conference Papers, 2025.
A. Lotfy, “Blockchain’s transformative role in enhancing audit quality,” Int. J. Auditing Accounting Syst., 2025.
A. Thommandru, “Recalibrating the banking sector with blockchain,” Procedia Comput. Sci., 2023.
T. Tandon et al., “Factors leading to the adoption of blockchain technology in finance,” Front. Blockchain, 2025.
B. R. Kunthu, R. N. Taware, and S. K. Anumula, “Blockchain-anchored audit trail model for transparent inter-operator settlement,” arXiv, Dec. 2025.
M. Qiao, I. Gondal, and H. Dong, “VeilAudit: breaking the deadlock between privacy and accountability across blockchains,” arXiv, Oct. 2025.
C. Nie, Y. Liu, and C. Wang, “AI application in anti-money laundering for sustainable and transparent financial systems,” arXiv, Dec. 2025.
Karol Strzala, Distributed Ledger Technology in the Financial Sector – KYC/AML Aspect, 36th IBIMA Conf., 2020.
H. Huang et al., “Blockchain technology in financial services,” World J. Adv. Res. Rev., 2024.
