Sri Lanka’s Financial Intelligence Unit: A Key Player in Combating Money Laundering and Terrorist Financing

Establishment and Objectives

The Financial Intelligence Unit (FIU) of Sri Lanka was established in 2006 as an independent institution under the Central Bank of Sri Lanka. Its primary objective is to combat money laundering, terrorist financing, and related crimes within the country, while adhering to international standards and best practices.

The FIU functions under the Ministry of Finance and Planning. The President established the FIU under the Financial Transactions Reporting Act No. 06 of 2006 (FTRA). The FIU plays an integral role in Sri Lanka’s financial crime and security infrastructure.

Mandate and Responsibilities

The FIU’s mandate is to:

• Receive, analyze, and disseminate financially-related information
• Collaborate with law enforcement and regulatory bodies to prevent financial crimes
• Mitigate money laundering and terrorist financing risks at a global level

This information shared by the FIU empowers law enforcement and regulatory bodies to:

• Investigate potential financial crimes proactively
• Strengthen their enforcement mechanisms

International Collaboration

The FIU works closely with international financial intelligence units and regulatory bodies to:

• Share valuable information
• Mitigate money laundering and terrorist financing risks globally

Significance and Impact

The establishment of the FIU marks a significant milestone in Sri Lanka’s efforts to strengthen its financial crime deterrence and enforcement mechanisms. By collaborating with various stakeholders both locally and internationally, the FIU plays a crucial role in:

• Safeguarding the country’s financial system
• Protecting it from potential threats arising from illicit financial flows

Thus, the FIU contributes to maintaining the integrity and stability of Sri Lanka’s financial sector.