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Blockchain-Based Distributed Compliance in Multinational Corporations’ Cross-Border Intercompany Transactions

A New Model for Distributed Compliance Across Subsidiaries in Different Jurisdictions

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Advances in Information and Communication Networks (FICC 2018)

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 887))

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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.

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Notes

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    The World Is Flat: A Brief History of the Twenty-first Century, Farrar, Straus and Giroux; 1st edition (April 5, 2005).

  2. 2.

    GM’s official website https://www.gm.com.

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    Available at https://www.ge.com/ar2015/assets/pdf/GE_2015_Form_10K.pdf.

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    https://www.strategyand.pwc.com/media/uploads/Strategyand-Managing-Global-Enterprise.pdf.

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Author information

Authors and Affiliations

  1. IBM Center for Blockchain Innovation, IBM Research, Singapore, Singapore

    Wenbin Zhang, Yuan Yuan, Yanyan Hu, Karthik Nandakumar & Anuj Chopra

  2. IBM Tax & Intercompany Singapore, Singapore, Singapore

    Sam Sim

  3. Industry Platforms and Blockchain, IBM Research Zurich, Zurich, Switzerland

    Angelo De Caro

Authors
  1. Wenbin Zhang
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  2. Yuan Yuan
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  3. Yanyan Hu
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  4. Karthik Nandakumar
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  5. Anuj Chopra
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  6. Sam Sim
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  7. Angelo De Caro
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Corresponding author

Correspondence to Wenbin Zhang .

Editor information

Editors and Affiliations

  1. Faculty of Science and Engineering, Saga University, Saga, Japan

    Kohei Arai

  2. The Science and Information (SAI) Organization, Bradford, West Yorkshire, UK

    Supriya Kapoor

  3. The Science and Information (SAI) Organization, New Delhi, India

    Rahul Bhatia

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Zhang, W. et al. (2019). Blockchain-Based Distributed Compliance in Multinational Corporations’ Cross-Border Intercompany Transactions. In: Arai, K., Kapoor, S., Bhatia, R. (eds) Advances in Information and Communication Networks. FICC 2018. Advances in Intelligent Systems and Computing, vol 887. Springer, Cham. https://doi.org/10.1007/978-3-030-03405-4_20

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  • DOI: https://doi.org/10.1007/978-3-030-03405-4_20

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-03404-7

  • Online ISBN: 978-3-030-03405-4

  • eBook Packages: EngineeringEngineering (R0)

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