Sri Lanka’s central financial institution has chosen a shortlist of three corporations to develop a proof-of-concept (PoC) for a shared Know Your B
Sri Lanka’s central financial institution has chosen a shortlist of three corporations to develop a proof-of-concept (PoC) for a shared Know Your Buyer (KYC) facility utilizing blockchain.
The undertaking was initiated in fall 2019, in keeping with a report from Sri Lanka’s Every day Mirror on July 2. The central financial institution is trying to set up a blockchain-based facility that will allow the federal government and the banking sector to securely share and replace buyer knowledge nationwide.
Talking at an occasion in Colombo on June 30, D. Kumaratunge — the central financial institution’s director of funds and settlements — advised attendees, “We invited software program corporations to develop a shared KYC PoC freed from cost, as a nationwide undertaking. The response to hitch this undertaking, each domestically and internationally, has been extraordinarily heartening and we’re joyful to say that now we have finalised deciding on appropriate candidates to start growth shortly.”
Growing the blockchain PoC is anticipated to take six to 9 months
In response to Kumaratunge, the central financial institution acquired 36 purposes for the undertaking, from each native and worldwide corporations, from which it whittled down its decisions to a shortlist of three. One of many three is reported to be an (unnamed) overseas tech agency.
The three shortlisted corporations will now proceed to develop the PoC — a course of that’s anticipated to take between six to 9 months.
As soon as it has been accomplished, the builders will submit their report on the PoC to be evaluated by the funds and settlements division, the Nationwide Fee Council, and at last the Financial Board.
A number of Sri Lankan banks have already agreed to hitch the undertaking, Kumaratunge mentioned. The central financial institution expects the potential advantages of the shared KYC facility to incorporate the extra environment friendly onboarding of recent prospects, decrease administrative prices and subsequently, it hopes, improved monetary inclusion within the nation.
The central financial institution acknowledged, “The get together chosen to implement the PoC will neither be prejudiced from making use of for any subsequent business growth of a shared KYC facility that will happen nor would the corporate receive any choice attributable to their engagement on this POC growth.”
Sri Lanka’s Anti-Cash Laundering reforms
Sri Lanka was just lately delisted from the Monetary Motion Process Pressure’s so-called “gray record” for international locations whose Anti-Cash Laundering and Counter Terrorism Financing regimes are thought-about insufficient. Sri Lanka had been included within the record again in 2017.
By October 2019, FATF mentioned that an evaluation of the nation’s measures earlier that yr had assured observers that AML/CFT reforms had begun and had been being sustained, and that “the required political dedication stays in place to maintain implementation sooner or later.”