Financial Crime World

Sri Lanka’s Financial Regulator Imposes Rs. 14 Million in Penalties for AML/CFT Non-Compliance in Q4 2023

Colombo: FIU Imposes Penalties on Financial Institutions for FTRA Non-Compliance

During the last quarter of 2023, the Financial Intelligence Unit (FIU) in Sri Lanka imposed a total of Rs. 14 million in penalties on various financial institutions for neglecting the provisions of the Financial Transactions Reporting Act (FTRA) No. 6 of 2006.

Authority to Impose Financial Penalties

The Financial Intelligence Unit, which is the designated body for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) in Sri Lanka, has the power to impose financial penalties on institutions as per Sections 19 (1) and 19 (2) of the FTRA. The extent of the penalty is determined based on the significance and severity of the non-compliance cases.

Enforcing Financial Regulations and AML/CFT Guidelines

Since Quarter 4 of 2023, the FIU has been focusing on enforcing financial regulations and ensuring adherence to AML/CFT guidelines. The penalties are a crucial step towards improving the financial sector’s overall regulatory environment and safeguarding it from potential money laundering and terrorist financing threats.

Crediting the Penalties to the Consolidated Fund

The money gathered as part of these penalties has been credited to the Consolidated Fund, emphasizing the government’s commitment to implementing a robust regulatory framework in the financial sector.

FIU’s Commitment to FATF Standards

The Financial Intelligence Unit has reiterated its responsibility to implement and enforce the applicable regulations impartially, in line with the international standards set out by the Financial Action Task Force (FATF). The Unit remains committed to working closely with regulated entities to provide advice and guidance on AML/CFT compliance to ensure a thriving and secure financial sector in Sri Lanka.

Maintaining Integrity and Transparency of the Financial Sector

This press release serves as a reminder to all financial sector stakeholders of the importance of adhering to the financial regulations and guidelines to maintain the integrity and transparency of the financial sector.

  • Total Penalties Collected: Rs. 14 million
  • Section 19 (1) & 19 (2) of the FTRA: The sections that provide the authority to impose penalties
  • Enforcing Regulations: Focus on enforcing financial regulations and AML/CFT guidelines
  • Credit to the Consolidated Fund: The destination of the collected penalties
  • Government’s Commitment: Showcasing the government’s commitment to a robust regulatory framework
  • Working Closely with Regulated Entities: Collaborating with entities to promote AML/CFT compliance
  • Maintaining Financial Sector’s Integrity: The significance of adhering to regulations and guidelines.