Financial Crime World

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Strengthening Sri Lanka’s Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) Framework

The Financial Intelligence Unit (FIU) of Sri Lanka has been actively engaged in various initiatives to strengthen the country’s AML/CTF framework. These efforts aim to enhance financial sector compliance, educate the public on relevant topics, and promote a safer financial environment.

Initiatives by the FIU

Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) Risk Assessments

  • The FIU has conducted AML/CTF risk assessments for domestic banks to identify potential vulnerabilities and provide recommendations for improvement.
  • These assessments help financial institutions understand their exposure to money laundering and terrorist financing risks, enabling them to implement effective mitigation measures.

Advanced Cybercrime Investigation Course

  • In collaboration with the International Criminal Investigative Training Assistance Program (ICITAP), the FIU conducted an Advanced Cybercrime Investigation Course.
  • This course aimed to enhance the skills of investigators in Sri Lanka, empowering them to effectively investigate and combat cyber-related crimes.

Public Awareness and Education

Protecting Yourself from Crypto Investment Scams

  • The FIU has issued a public notice on protecting oneself from crypto investment scams.
  • These scams often target unsuspecting individuals, promising high returns on investments. However, they can lead to significant financial losses.

Maintaining Separate Bank Accounts for Personal and Business Purposes

  • A separate notice to businesses emphasizes the importance of maintaining separate bank accounts for personal and business purposes.
  • This helps prevent commingling of funds, reduces the risk of money laundering, and facilitates effective accounting and tax compliance.

Supporting Designated Non-Finance Businesses and Professions (DNFBPs)

  • The FIU has issued a notice to customers of DNFBPs, providing guidance on adhering to legal requirements.
  • These businesses, including lawyers, accountants, and real estate agents, play a critical role in the financial system. Effective compliance helps prevent money laundering and terrorist financing.

Supporting Financial Institutions (FIs)

  • A similar notice has been issued to customers of FIs, emphasizing the importance of adhering to legal requirements.
  • This includes reporting suspicious transactions, maintaining accurate records, and implementing effective anti-money laundering controls.

Strengthening Legislation

  • The Central Bank has announced amendments to legislation related to AML/CFT.
  • These changes aim to enhance the effectiveness of Sri Lanka’s AML/CTF framework, improving compliance and reducing the risk of money laundering and terrorist financing.

Establishing an Inter-Regulatory Body

  • An inter-regulatory body has been established under the AML/CFT National Coordinating Committee.
  • This body brings together various stakeholders to coordinate efforts, share best practices, and promote a unified approach to combating money laundering and terrorist financing in Sri Lanka.