By Julia Walker1 and Leanne Kemp2
1Head of Market Development, Risk and Regulatory Technology, Asia Pacific, Refinitiv
2Founder and CEO, Everledger
Globally it is generally accepted that supply chains are becoming too complex and lack transparency, raising risks and compliance concerns. Blockchain and regulatory technology (RegTech) have the ability to reconceptualize regulation and bake it into the fabric of the supply chain. The potential is immense, crossing boundaries and assisting in global concerns such as human rights and financial inclusion, as well as combating corruption, modern-day slavery, and financial crime.
Globally there has been a raft of regulations that have come into force due to society’s drive to protect our most vulnerable members of society. Brand impacts and regulations, such as the US Foreign Corrupt Practices Act (FCPA), conflict minerals rule (US Dodd-Frank Act, section 1502), UK Bribery Act (UKBA), UK Modern-Day Slavery Act, French Corporate Duty of Vigilance Law, Australia’s new compliance reporting legislation, and a host of other global regulatory initiatives, have significantly increased the importance of establishing transparent supply chains.
Hewlett Packard, Nestlé, and Coca-Cola have enforced new standards for their suppliers to address human rights issues like modern-day slavery. Indeed, Hewlett Packard also requires standards to be applied further down the supply ...