Money Broking Industry

Authorized Money Brokers (AMBs) are regulated under the Money Broking Regulations No. 1 of 2013 issued under Section 10 (c) of the MLA, No. 58 of 1949. This regulation came into effect from 15 February 2013 and was amended in June 2016. The purpose of regulating AMBs is to obtain information on the efficiency of price discovery in the sub sectors of the money market for market analysis and policy actions. This is important since developments in the money market have a direct bearing on the CBSL policies.

There are two supervisory methods for this purpose. One is the off-site surveillance (continuous supervision) where AMBs are supervised through information obtained via on-line and off-line methods. The second method is on-site surveillance where CBSL staff visit the premises of AMBs to check whether they comply with the regulations in force. Each AMB is supervised on -site at least once a year.

AMBs act as intermediaries in money, foreign exchange and government securities markets. They facilitate transactions between PIs by providing bids and quotes. AMBs income is the brokerage charged from the two transacting parties.