On Dec. 3, SRI CB required enhanced customer verification process.
SRI CB issued circular on strengthening customer identification process to safeguard funds in current accounts/savings accounts (CASA), re mobile payment applications.
Follows SRI CB Jan. 2024 issued circular on mobile payment transactions, #198408.
Document dated Dec. 3, 2024, received from SRI CB Feb. 14, summarized Dec. 18.
Highlights of Circular
Specifies the procedures for mobile payment application providers (MPAPs) to safeguard CASA of customers from unauthorized access through payment apps.
When registering customers and/or linking CASA to any payment app, MPAPs shall comply with the procedures in addition to Guidelines on minimum compliance standard for payment related mobile applications and circular issued in Jan. 2024 (#198408).
Verification Processes
MPAPs shall establish a mechanism to obtain information to identify the user during the registration process using identity documents such as national identity cards.
Verify the user's identity before allowing the user to initiate transactions using a payment app of the financial institution or linking a CASA to a JustPay-enabled app.
Ensure that the user of the payment app and the owner of the CASA is the same when a CASA is linked to a JustPay-enabled payment app by verifying the mobile number.
Requirements for MPAPs
JustPay-enabled payment apps shall comply with all three requirements above while payment apps of licensed financial institutions need to comply with the first two.
Transaction acquirers shall inform any third-party MPAPs and shall provide adequate guidance to third-party MPAPs in establishing processes to implement requirements.
They shall report in prescribed format in annex 1 to the SRI CB on the compliance of payment apps operated or facilitated by them with the requirements by Apr. 15, 2025.
They shall report subsequent report on or before Jan. 31 of each year, along with the compliance status with the guidelines on minimum compliance standard in annex 2.
Effectiveness
All MPAPs shall adopt the above verification processes by Mar. 31, 2025.
