The central bank of Sri Lanka chose a list of three companies to develop one conceptual evidence (PoC) for a joint installation of “Know Your Customers” (KYC) with blockchain technology.
The project started in autumn 2019, according to a report by the Sri Lankan Daily Mirror on July 2.
At an event in Colombo on June 30th D. Kumaratunge – Director of Payments and Settlements at the Central Bank – said to the participants: “We invite software companies to develop a joint PoC from KYC as a national project free of charge. The answer to joining this project both locally as an international, it was very encouraging and we are pleased to announce that we have completed the selection of the right candidates for early development. “
Blockchain-based PoC development is expected to take six to nine months
According to Kumaratunge The central bank received 36 requests for the projectfrom both local and international companies, of which he limited his options to only three. One of the three is said to be a foreign (not named) technology company.
The three companies that will be shortlisted will now develop the PoC, a process that is expected to take six to nine months.
Once it’s done The developers will submit their report, which will be evaluated by the Payments and Settlement Department, the National Monetary Council and finally the Monetary Committee.
Several Sri Lankan banks have already agreed to join the projectKumaratunge pointed this out. The central bank hopes that the potential benefits of installing KYC together will be that it will attract new customers more efficiently, reduce administrative costs, and is therefore expected to better financial inclusion in the country.
The central bank said: “The party chosen to use the PoC will not be disadvantaged by the demand for later commercial development of a shared KYC facility, nor will it be given a preference because of its participation in its development.” .
Anti-money laundering reforms
Sri Lanka was recently excluded from the so-called “gray list” of the International Financial Action Task Force (FATF) for countries whose regimes to combat money laundering and terrorist financing are considered inadequate. Sri Lanka was listed in 2017.
Until October 2019 The FATF said that an assessment of the measures the country had taken earlier this year assured observers that the reforms to combat money laundering and terrorist financing had begun and would continue.and that “the necessary political commitment remains in place to maintain application in the future.”