Sri Lanka To Use Blockchain Technology For KYC

Sri Lanka To Use Blockchain Technology For KYC

Blockchain News
December 3, 2019 Editor's Desk
244
In an open call published on its website Nov. 29, the bank declared that it is seeking tech companies who can create it a “proof of concept” shared KYC system for its banking industry. “The rising demand for digitalized financial services has created an opportunity for Sri Lanka to assess the possibility of adopting Blockchain
Central Bank of Srilanka

In an open call published on its website Nov. 29, the bank declared that it is seeking tech companies who can create it a “proof of concept” shared KYC system for its banking industry.

“The rising demand for digitalized financial services has created an opportunity for Sri Lanka to assess the possibility of adopting Blockchain Technology to advance Sri Lanka’s financial sector further,” the bank’s invitation to apply read.

The project appears to be an association between ‘Sri Lanka’s central bank’ and the ‘Sri Lankan tech sector’ at large, as it includes “experts” from Sri Lanka’s tech finance and tech industries.

A “shared KYC” system, as described by the press release, would enable commercial banks and the central government to share and renew customer data on a blockchain.

“It is expected that this would aid several potential use-cases that will increase the effectiveness in the financial sector,” and “help boost financial inclusion in Sri Lanka,” the release asserted.

But the release is otherwise skimpy on details. The bank will provide the KYC platform’s high-level design only to the selected candidate. The criteria for this being, an organization with at least 2 years of experience and a proven track record in developing and launching mobile applications.

The open call comes as Sri Lanka brings itself on a level with global financial regulatory standards.

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

“The FATF embraces Sri Lanka’s notable progress in developing its AML/CFT regime and notes that Sri Lanka has increased the effectiveness of its AML/CFT regime,” the global financial watchdog said in October.

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