Financial Crime World

Financial Intelligence Unit of Sri Lanka Releases Second National Risk Assessment on Money Laundering and Terrorist Financing

The Financial Intelligence Unit (FIU) of Sri Lanka has recently published the sanitized version of the 2021/22 National Risk Assessment (NRA) on Money Laundering and Terrorist Financing (ML/TF). Here are the key details:

Overview of the Assessment

  • The assessment was developed in collaboration with the Central Bank of Sri Lanka (CBSL) and various public and private sector stakeholders.
  • The primary goal of the assessment was to evaluate the risks of ML/TF in Sri Lanka.
  • The report highlights the most prominent ML/TF threats, vulnerabilities, and risks faced by the island nation.

Findings of the Assessment

  • According to the CBSL, the report is considered sensitive and details of its findings have not been made public.
  • However, the FIU plans to share the information with relevant international organizations, financial institutions, and other stakeholders soon.

Significance of the Assessment

  • ML/TF poses significant challenges to Sri Lanka’s financial system, as it fosters economic instability and fuels organized crime.
  • The assessment is expected to provide vital insights into tackling these issues effectively and collaboratively.

Importance of Combating ML/TF

  • The FIU’s report is a continuation of the first National Risk Assessment conducted in 2018.
  • The release of the sanitized NRA report coincides with an ongoing international trend towards adopting robust measures to counter ML/TF.
  • Several countries have intensified efforts to improve the implementation of international standards and best practices in this area.
  • This collective push reflects a renewed commitment to safeguard the global financial system and promote peace, stability, and economic prosperity.

Conclusion

The second National Risk Assessment on Money Laundering and Terrorist Financing by the Financial Intelligence Unit of Sri Lanka is a significant step towards addressing the challenges posed by ML/TF in the country. The findings of the assessment are expected to provide valuable insights into tackling these issues effectively and collaboratively. This initiative is reflective of Sri Lanka’s commitment to combating financial crimes and promoting transparency and accountability in the financial system.