The Central Bank of Sri Lanka has announced a new regulatory requirement mandating registration for all Money or Value Transfer Service (MVTS) providers, effective from June 3, with rigorous monitoring to ensue, aimed at bolstering the stability of the financial sector.
In a bid to formalize operations and ensure compliance with Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regulations, the Central Bank is extending an opportunity for unregistered or unlicensed MVTS providers to legitimize their operations and participate in the money transfer business through recognized channels.
Defining MVTS as financial services involving the acceptance of cash, cheques, or other monetary instruments, with corresponding payments made through communication or transfer means, the Central Bank clarified that these transactions could encompass one or more intermediaries and involve payments within or outside Sri Lanka.
Under the new regulations, individuals or entities engaging in MVTS activities must obtain a Certificate of Registration from the Central Bank, thereby ensuring adherence to prescribed terms and conditions. However, exemptions are granted to those already licensed or authorized by the Central Bank or other government entities to engage in similar financial services.
Existing MVTS providers operating without proper authorization have been granted a one-year grace period, starting from the regulation's effective date on June 3, 2024, to apply for registration with the Central Bank.
