By: Staff Writer
June 13, Colombo (LNW): Central bank is set to function as the regulatory and supervisory authority of Money or value transfer service providers
A company limited by guarantee, an offshore company or an overseas company within the meaning of the Companies Act, No. 7 of 2007 is not eligible for registration under these Regulations, CB announced in a statement.
An eligible person who intends to engage in the business of an MVTS Provider should submit the duly filled prescribed application to CBSL and obtain a Certificate of Registration.
A company issued with such Certificate of Registration will be referred to as a “Registered MVTS Provider” and will be entitled to engage in the business of or function as a MVTS Provider.
Further, during this business process, transmission of money between Registered MVTS Providers and their Agents shall be by way of bank transfers.
Moreover they are required to maintain records of Agents, associates, employees engaging in MVTS related activities, and transactions including details of Transmitter, Beneficiary, Agent, the method of transfer, period of safekeeping, etc.
CBSL will function as the regulatory and supervisory authority of Registered MVTS providers. Accordingly, CBSL may carry out supervision of any Registered MVTS Provider and issue requirements on any one or more Registered MVTS Providers regarding the manner in which any aspect of their business is to be conducted.
Any potential or existing MVTS Provider that falls within these new requirements is requested to take necessary action to comply with the same on a timely basis. The above-mentioned Regulations can be accessed through
Currently, institutions providing money transfer services in Sri Lanka such as banks and non-bank financial institutions, are regulated by the Central Bank of Sri Lanka (CBSL) or other relevant authorities to ensure financial system stability.
However, some entities providing similar services operate outside the formal system, potentially disrupting the money transfer system and not being subject to Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regulatory framework.
To address this, the Minister of Finance, Economic Stabilization, and National Policies issued the Money or Value Transfer Service (MVTS) Providers Regulations, No. 1 of 2024 dated April 20, 2024, under the provisions of the Payment and Settlement Systems Act, No. 28 of 2005.
Accordingly, effective from June 3, 2024, these regulations require all MVTS providers to be registered and be monitored, offering unregistered or unlicensed MVTS providers the opportunity to formalize their operations and engage in the money transfer business through formal channels.
For the purpose of these Regulations, MVTS is defined as “financial services that involve the acceptance of cash, cheques, other monetary instruments or other stores of value and the payment of a corresponding sum in cash or other forms to a beneficiary.
