Financial Crime World

Strengthening Anti-Money Laundering and Counter-Terrorist Financing Framework in Sri Lanka

The Financial Intelligence Unit (FIU) of Sri Lanka has been actively engaged in various initiatives to enhance its anti-money laundering and counter-terrorist financing framework. These efforts aim to strengthen the country’s ability to detect, prevent, and investigate financial crimes.

Key Events and Developments

Terrorism Financing (ML/TF) Risk Assessments

The FIU conducted workshops with domestic banks in Sri Lanka, in association with the Asian Development Bank (ADB). These sessions aimed to assess the risk of money laundering and terrorist financing. The workshops provided an opportunity for the FIU to engage with the banking sector and enhance their understanding of ML/TF risks.

Advanced Cybercrime Investigation Course

Officials from the FIU participated in an advanced cybercrime investigation course conducted by the International Criminal Investigative Training Assistance Program, of the United States Department of Justice. The program focused on:

  • Cybercrime investigations: Developing skills to investigate complex cybercrimes
  • Forensic analysis: Understanding and applying forensic techniques to analyze digital evidence
  • Cryptocurrency analysis: Recognizing and investigating cryptocurrency-related crimes

Notice to the Public: Protecting the Public from Crypto Investment Scams

The FIU issued a notice warning the public about the risks of crypto investment scams. The notice advised the public to be vigilant and report any suspicious activities to the authorities.

Protect Yourself from Crypto Investment Scams

  • Be cautious of unsolicited investment opportunities
  • Research the company and its reputation before investing
  • Verify the authenticity of investment offers
  • Report suspicious activities to the FIU

Notice to the Public: Misuse of Personal Accounts for Illegal Activities

The FIU advised businesses to maintain separate bank accounts for personal and business transactions. This is to avoid misuse and potential money laundering risks.

Best Practices for Businesses

  • Maintain separate bank accounts for personal and business transactions
  • Ensure accurate record-keeping and reporting
  • Implement robust internal controls to prevent misuse

Strengthening AML/CFT Framework

The Central Bank of Sri Lanka has announced plans to strengthen its anti-money laundering and counter-terrorist financing framework. This includes the establishment of an inter-regulatory body under the AML/CFT National Coordinating Committee.

Enhancing AML/CFT Framework

  • Establishing an inter-regulatory body for coordination and cooperation
  • Implementing robust risk-based approaches to AML/CFT
  • Enhancing customer due diligence and reporting requirements