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Sri Lanka Central Bank To Use Blockchain For KYC Processes

The Central Bank of Sri Lanka announced that it is searching for tech companies who can build a “proof of concept” shared KYC system for its banking industry.

On Nov. 29 the bank announced on its website in an open call. The bank’s invitation to apply read:

“The increasing demand for digitalized financial services has created an opportunity for Sri Lanka to evaluate the possibility of adopting Blockchain Technology to further advance Sri Lanka’s financial sector”

Shared And Updated Customer Data On A Blockchain

The project is a collaboration between Sri Lanka’s central bank and the Sri Lankan tech “experts” from Sri Lanka’s tech finance and tech industries. 

The press release outlines that a “shared KYC” would allow commercial banks and the central government to share and update customer data on a blockchain. The press release further stated:

“It is expected that this would facilitate several potential use-cases that will increase efficiencies in the financial sector,” and “help increase financial inclusion in Sri Lanka”

The bank will share the KYC platform’s “high-level design” with the selected candidate: a company with at least two years of experience and a “proven track record of developing and launching mobile applications.”

Sri Lanka At Par Now With The Global Financial Regulatory Standards

Sri Lanka right now is at par with the global financial regulatory standards. 

In October, it was removed from the Financial Action Task Force’s (FATF) anti-money laundering/counter the financing of terrorism (AML/CFT) “strategic deficiencies” blacklist. It indicates that the country had bolstered its defenses since placed on the list in Nov. 2017.

The global financial watchdog said in October “The FATF welcomes Sri Lanka’s significant progress in improving its AML/CFT regime and notes that Sri Lanka has strengthened the effectiveness of its AML/CFT regime.”

Source: Central Bank of Sri Lanka | Coindesk | Image: Reuters

 
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