Sri Lanka’s Financial Crimes Regulator Imposes Rs. 14 Million in Penalties on Financial Institutions

Colombo, Sri Lanka: FIU Takes Tough Action against Financial Non-Compliances

During the last quarter of 2023, the Financial Intelligence Unit (FIU) of Sri Lanka imposed financial penalties totaling Rs. 14 million on 27 financial institutions for non-compliance with Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regulations.

Enforcing Financial Compliance and Collecting Fine Revenues

The penalties were issued in line with the powers granted under Section 19 (1) and Section 19 (2) of the Financial Transactions Reporting Act No. 6 of 2006 (FTRA). The FTRA empowers the FIU to impose fines based on the nature and severity of non-compliances with its regulations. These fines have been credited to the Consolidated Fund.

Ongoing Efforts to Minimize Illicit Financial Activities

These penalties are part of the FIU’s ongoing efforts to enforce financial compliance among Sri Lanka’s financial institutions and uphold the integrity of the country’s financial system. This comes as there is an increasing global focus on AML/CFT measures.

In a statement, the FIU reiterated its commitment to:

1. Working closely with financial institutions to ensure full adherence to the FTRA.
2. Promoting a culture of transparency and accountability in the financial sector.
3. Minimizing risks associated with illicit financial activities.
4. Safeguarding the economic security of the country.

By taking this strong stance against financial non-compliances, the FIU is demonstrating its dedication to upholding the highest standards of financial integrity in Sri Lanka.