Financial Crime World

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National Policy on Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) for Sri Lanka

The National Policy on AML/CFT for Sri Lanka aims to prevent and combat money laundering (ML) and terrorist financing (TF) in Sri Lanka. This policy has been developed in collaboration with various stakeholders.

Key Objectives

The key objectives of this policy are:

  • Establish a robust AML/CFT regime
  • Enhance public awareness and understanding of AML/CFT risks
  • Improve international cooperation on AML/CFT matters
  • Strengthen the capacity of law enforcement agencies to investigate and prosecute ML/TF cases

Principles

The policy is driven by six strategic principles:

  • Implementing international standards on combating ML/TF
  • Optimizing inter-agency coordination and cooperation
  • Proactively engaging with other jurisdictions on AML/CFT matters
  • Deploying supervisory and regulatory authorities to address financial crime and corruption
  • Implementing a preventive regulatory program across all sectors, including DNFBPs
  • Educating private sector stakeholders on ML/TF risks and promoting compliance

Regulatory Framework

The policy is supported by three key pieces of legislation:

Convention on the Suppression of Terrorist Financing Act (CSFTA)

Financial Transactions Reporting Act (FTRA)

Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Crime Act (AMLA)

Law Enforcement Framework

The policy is enforced by various institutions, including:

  • Sri Lanka Police
  • Financial Intelligence Unit
  • Designated Non-Financial Businesses and Professions (DNFBPs)
  • Commission to Investigate Allegations of Bribery or Corruption

Reporting Institutions

The Financial Intelligence Unit requires the following institutions to report suspicious transactions:

  • Licensed Commercial Banks
  • Licensed Specialized Banks
  • Licensed Finance Companies
  • Stockbrokers
  • Insurance Companies
  • Money or Value Transfer Service Providers
  • Restricted Dealers

Conclusion

The National Policy on AML/CFT aims to prevent and combat ML/TF in Sri Lanka, ensuring the soundness of the country’s AML/CFT regime. Relevant institutions are required to incorporate the policy’s objectives into their institutional policies and strategies, ensuring effective implementation.