Sri Lanka: Central Bank to Develop Blockchain-Based Proof-Of-Concept KYC Platform

The Financial Board of the Central Financial institution of Sri Lanka (CBSL) has short-listed three software program growth companies to design a shared blockchain-based Proof-of-Idea (POC) Know-your-Buyer (KYC) platform, D. Kumaratunge–the nation’s Central Financial institution Director Funds and Settlements, has revealed whereas talking in an occasion organized by LankaClear (Pvt.) Ltd in Colombo on July 2, 2020, the Every day Mirror On-line reports. 

The Central Financial institution of Sri Lanka Contemplating a Blockchain Resolution Effectivity Objective

The power is supposed to streamline processes, slash prices, cut back authorized burdens, and enhance effectivity, subsequently making it simpler for native banks to onboard new prospects. 

The announcement comes just a few months after the central financial institution called upon tech companies to voluntarily develop a POC system. 

If Sri Lanka is satisfied and accepts a blockchain resolution to resolved KYC challenges, the platform will ease the movement of data between Sri Lanka’s banking sector and authorities companies.

Notably, a complete of 36 international and native companies utilized to attempt to check their luck. Each agency that utilized needed to show the flexibility to develop a blockchain-based resolution. A minimal of two years of expertise in enterprise-grade growth was additionally required.

Among the many three unnamed shortlisted companies is an “skilled international agency.” Nevertheless, as soon as the central financial institution receives authorization, the three will start growing a POC system.

The POC Means Effectivity

Thereafter, they shall submit an in depth report back to the Funds and Settlements Division of the Central Financial institution. 

The Financial Board of the Central Financial institution will then, primarily based on the report and with out prejudice, choose any of the three firm’s proposal as soon as a Request for Proposal (RFP) has been floated to the general public area.

Of their phrases, the CBSL mentioned:

“The celebration chosen to implement the POC will neither be prejudiced from making use of for any subsequent business growth of a shared KYC facility which will happen nor would the corporate get hold of any desire resulting from their engagement on this POC growth.”

Already, a number of banks have proven help. With a shared KYC platform, banks cannot solely save prices and enhance effectivity as aforementioned however a shared and dependable KYC platform makes it straightforward to sort out fraud and different illegalities like terrorist financing.

Final 12 months, the monetary market regulator in Switzerland—FINMA, released a information directing blockchain fee firms to adjust to AML and KYC legal guidelines in keeping with FATF guidelines.