Financial Crime World

Sri Lanka’s Financial Crime Legislation: A Glimpse at Key Acts and Regulations

The Financial Intelligence Unit (FIU) of Sri Lanka plays a crucial role in combating financial crimes, including money laundering and terrorist financing. One of its primary responsibilities is enforcing the country’s legislative framework, which consists of various Acts and Regulations. This article provides a brief overview of the key financial crime legislation in Sri Lanka.

Acts

1. Convention on the Suppression of Terrorist Financing Act, No. 25 of 2005

The Convention on the Suppression of Terrorist Financing Act was introduced to suppress the financing of terrorist acts. It mandates the reporting, freezing, and seizure of funds related to terrorist activities. Violations of the Act are met with penalties. The Act is available in Sinhala, Tamil, and English.

1.1 Key Provisions

  • Reporting: Suspicious transactions must be reported to the FIU.
  • Freezing and Seizure: Funds suspected of being linked to terrorist financing must be frozen and, if necessary, seized.
  • Penalties: Non-compliance with reporting or freezing/seizure obligations can result in fines and imprisonment.

2. Convention on the Suppression of Terrorist Financing (Amendment) Act, No. 41 of 2011

This amendment Act expanded the scope of the original Act to include:

  • The Freezing and Seizure of Property Obtained by Unlawful Activities Act (No. 21 of 1995)
  • The Money Laundering Prohibition Act (No. 24 of 1995)

Additionally, the penalty provisions in the Act were enhanced. The Act is available in Sinhala, Tamil, and English.

Importance of Effective Regulatory Framework

The financial crimes landscape is constantly evolving, and regulatory frameworks need to address these changes effectively. The Financial Intelligence Unit of Sri Lanka, with its mandate to combat financial crimes, is crucial in ensuring the effectiveness and efficiency of the legislative framework.


**Note**: The provided Markdown format does not include indentation for the bullet points under the `1.1 Key Provisions` heading. A more polished version would use proper indentation for improved readability.