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Sri Lanka anti-money laundering watchdog fines banks, finance companies

ECONOMYNEXT – Sri Lanka’s Financial Intelligence Unit, the island’s anti-money laundering watchdog, said it had fined two banks and three finance companies for violating a Financial Transactions Reporting law.

The penalties were imposed for violating customer due diligence on third party deposits obtaining approval for Politically Exposed Persons (PEPs), sanctions screening and financial transaction reporting, the FIU said.

As the the regulator for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) in the country, the FIU imposed penalties financial institutions were fined 5 million rupees in 2019 and one million rupee up to May 2020.

The Monetary Board of the Central Bank of Sri Lanka at its meeting dated 01 July 2020 decided to publish the penalties imposed on the financial institutions by the FIU in order to improve the AML/CFT compliance level in the country.

In 2019 Bank of Ceylon had been fined 3.0 million rupees, Nations Trust Bank 1 million, and Commercial Credit and Finance 1 million. In 2020, Sarvodaya Development Finance had been fined 500,000 rupees and UB Finance Company 500,000 rupees.