Quick Intake –
Hi guys, In this post, let’s see about Sri Lanka’s announcement on creating and maintaining KYC via blockchain. One of the classic applications of blockchain technology is creating a DIGITAL ID to the citizens which shall be used to prove the identity with tight controls on privacy and data security.
As a result of this, the user will have all the rights on his ID sharing and chances of misrepresentation shall be avoided completely.
Happy Reading…
The Central Bank of Sri Lanka wants to develop a blockchain-based know-your-customer (KYC) platform.
In an open call posted to its website Nov. 29, the bank announced that it is searching for tech companies who can build it a “proof of concept” shared KYC system for its banking industry.
“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 SriLanka’s financial sector,” the bank’s invitation to apply read.
The project appears to be a collaboration between Srilanka’s central bank and the Srilankan tech sector at large, as it involves “experts” from Sri Lanka’s tech finance and tech industries.
A “shared KYC” system as outlined by the press release would allow commercial banks and the central government to share and update customer data on a blockchain.
“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 release said.
But the release is otherwise short on details. 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.”
The open call comes as Sri Lanka further brings itself on par with 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, indicating that the country had bolstered its defenses since placed on the list in Nov. 2017.
“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,” the global financial watchdog said in October.
**AML/CFT – Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act)
