Central Bank of Sri Lanka Seeks Proof of Concept For Blockchain-Based KYC Platform

Sri Lanka’s Central Bank has launched a proposal to develop a know-your-customer (KYC) platform based on blockchain. The Central Bank posted the announcement on their website, on November 29. The announcement says the bank is looking for tech companies that are up for building a proof-of-concept and shared KYC system in the banking sector.

The same announcement reads that digitalized financial services are in demand, which has given Sri Lanka the opportunity to have a look at the blockchain technology when it comes to financial sectors.

A Collaboration Between the Central Bank and the Tech Sector

The project is a collaboration between the Central Bank of Sri Lanka and the tech sector in the country, as it involves experts working in the tech and finance industries. When it comes to what a shared KYC type of system would offer, this would allow the government and commercial banks to both update and share their customer information on a blockchain.

The press release says it’s expected for the financial efficiency to increase and Sri Lanka to become financially included in the global system. However, it doesn’t give too many details about what’s about to come. The Central Bank is going to share the platform’s design with the company it selects, which has to have at least 2 years of experience and a record in launching and developing mobile apps.

Sri Lanka is Trying to Adhere to Global Financial Regulations

The efforts made by the Sri Lanka Central Bank are coming while the country is trying to adhere to the global standards regulations.

Back in October, it got removed from the Financial Action Task Force (FATF) black list of anti-money laundering and countering the financing of terrorism (AML/CFT), which means Sri Lanka has improved its defense ever since it was put on the same list, in November 2017.

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