Financial Crime World

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

The National Policy on AML/CFT in Sri Lanka is a comprehensive document that outlines the country’s approach to preventing money laundering and countering terrorist financing. The policy aims to prevent and combat money laundering and terrorist financing, while ensuring effective implementation of international standards and protecting Sri Lanka’s financial system.

Objectives of the Policy

The policy has several objectives:

  • To prevent and combat money laundering and terrorist financing in all its forms: The policy seeks to eradicate money laundering and terrorist financing from Sri Lanka.
  • To ensure effective implementation of international standards on AML/CFT: The policy aims to comply with global standards and best practices on AML/CFT.
  • To protect Sri Lanka’s financial system from being used for ML/TF: The policy seeks to safeguard the country’s financial system from exploitation by criminals and terrorists.
  • To enhance the capacity of law enforcement agencies to investigate and prosecute ML/TF cases: The policy aims to equip law enforcement agencies with the necessary skills and resources to combat money laundering and terrorist financing.
  • To increase awareness among stakeholders, including the general public, about the risks of ML/TF: The policy seeks to educate stakeholders about the dangers of money laundering and terrorist financing.

Goals of the Policy

The policy has several goals:

  • Developing a national AML/CFT strategy: The policy aims to develop a comprehensive strategy for preventing and combating money laundering and terrorist financing.
  • Enhancing inter-agency coordination and cooperation on AML/CFT: The policy seeks to improve collaboration among government agencies, financial institutions, and other stakeholders.
  • Improving the capacity of law enforcement agencies to investigate and prosecute ML/TF cases: The policy aims to equip law enforcement agencies with the necessary skills and resources to combat money laundering and terrorist financing.
  • Increasing awareness among stakeholders about the risks of ML/TF: The policy seeks to educate stakeholders about the dangers of money laundering and terrorist financing.
  • Implementing effective measures to prevent and combat ML/TF: The policy aims to implement effective measures to prevent and combat money laundering and terrorist financing.

Implementation Principles

The policy outlines several principles that will drive its implementation:

  • Aggressively implementing international standards on AML/CFT: The policy seeks to comply with global standards and best practices on AML/CFT.
  • Optimizing and integrating inter-agency coordination and cooperation on AML/CFT: The policy aims to improve collaboration among government agencies, financial institutions, and other stakeholders.
  • Improving the capacity of law enforcement agencies to investigate and prosecute ML/TF cases: The policy seeks to equip law enforcement agencies with the necessary skills and resources to combat money laundering and terrorist financing.
  • Increasing awareness among stakeholders about the risks of ML/TF: The policy aims to educate stakeholders about the dangers of money laundering and terrorist financing.

Regulatory Frameworks

The policy outlines several regulatory frameworks, including:

  • Financial sector regulators: Central Bank of Sri Lanka, Securities and Exchange Commission of Sri Lanka, Insurance Regulatory Commission of Sri Lanka, etc.
  • DNFBP Sector Licensing/Registration Authorities: Ministry of Finance, National Gem and Jewellery Authority, Institute of Chartered Accountants of Sri Lanka, etc.

Reporting Institutions

The policy outlines several reporting institutions, including:

  • Financial Institutions: Licensed Commercial Banks, Stockbrokers, Insurance Companies, Money or Value Transfer Service Providers, etc.
  • Designated Non-Financial Businesses and Professions: Gem and Jewellery Dealers, Real Estate Agents, Casinos, Lawyers and Notaries, etc.

Implementation

The policy was developed under the auspices of the National Coordination Committee (NCC) and is being implemented by all relevant institutions in Sri Lanka.