ECONOMYNEXT – Sri Lanka has been placed on a new European Union list of high risk countries where bank have to exercise extra due diligence which fall short of anti-money laundering criteria set by the EU.
Sri Lanka was placed on an EU blacklist of high risk countries in 2018, with a European parliament vote confirming the draft list of the European Commission.
The new list of 23 countries based on a revised methodology will also go for a vote within a month, or two, if extra time is given.
The European Commission, which prepares the list for vote has de-listed Bosnia-Herzegovina, Guyana, Lao PDR, Uganda and Vanuatu in 2019.
Sri Lanka is also on a list of 12 countries that has been red-flagged by another global body, the Financial Action Task Force, which the EU uses as a base.
But it had also indentified another 11 countries on additional EU specific findings.
Sri Lanka has taken a several measures to comply with FATF requirements including changing laws.
Sri Lanka’s Central Bank has said it was expecting the FATF to review the list this year following actions taken.
The EU listing does not accompany any specific sanctions on Sri Lanka, but transactions with banks and customers require higher levels of scrutiny. (Colombo/Feb18/2019 – SB)