CB mandates banks to start recording UINs of depositors

Sri Lanka’s banking sector regulator, the Central Bank (CB), this week issued a direction mandating the licensed commercial banks and licensed specialised banks to start recording the unique identification numbers (UINs) of their depositors, with effect from October 01, 2022. 

“The licensed banks shall comply with the requirements of these directions, with effect from 01.10.2022 for all new depositors. The licensed banks shall complete recording of UINs of the existing depositors by 31.12.2023,” Banking Act Direction No.07 of 2022, signed by CB Governor Dr. P. Nandalal Weerasinghe, stated.
The direction was issued under Section 76J(1) of the Banking Act.

As per the instructions issued, the banks are required to use the National Identity Card (NIC) number as the UIN for deposit accounts held by Sri Lankan citizens, including dual citizens. 

For non-Sri Lankan citizens, their foreign passport number is to be utilised as the UIN. For minor depositors (below age of 18 years), their date of birth and birth certification number will be utilised in determining the UIN.

The banks already ask for customers to provide the NIC or other alternative identification documentation such as passport or driving licence when opening deposit accounts. The mandatory UIN is expected to improve the know-your-customer (KYC) procedure, which is a critical function to assess, monitor customer risk and legal requirements, in order to comply with the anti-money laundering laws. The CB has also issued instructions on recording the UINs of corporates and other institutions.