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


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.


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


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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Wenbin Zhang
    • 1
  • Yuan Yuan
    • 1
  • Yanyan Hu
    • 1
  • Karthik Nandakumar
    • 1
  • Anuj Chopra
    • 1
  • Sam Sim
    • 2
  • Angelo De Caro
    • 3
  1. 1.IBM Center for Blockchain InnovationIBM ResearchSingaporeSingapore
  2. 2.IBM Tax & Intercompany SingaporeSingaporeSingapore
  3. 3.Industry Platforms and BlockchainIBM Research ZurichZurichSwitzerland

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