Important Notice to Designated Non Finance Businesses and Professions - Apr. 15, 2018

The following Designated Non-Finance Businesses (DNFBs) are required to hereby carry out their obligation of implementing proper policies and procedures to prevent money laundering and terrorist nancing attempts using such businesses and professions as provided for under the “Designated Non-Finance Business (Customer Due Diligence) Rules, No. 1 of 2018” (Rules) and the Extraordinary Gazette Notication No. 2015/56 dated April 21, 2017 on “Suspicious Transactions (Format) Regulations of 2017”, in terms of the Financial Transactions Reporting Act, No. 6 of 2006 (FTRA).

Training Session on “ How to Comply with the Legal Obligations of AML & CFT ” for Designated Non-Finance Businesses

The Financial Intelligence Unit (FIU) of Sri Lanka conducts training sessions for the compliance officers of designated non-finance businesses on the theme of “How To Comply with the Legal Obligations of Anti-Money Laundering & Countering the Financing of Terrorism (AML/CFT)” as a guidance on AML/CFT compliance for the institutions which are designated under the non-finance business category.

Event: Are You Aware of Your Responsibilities Under the FTRA

The objective of this session is to raise awareness on the provisions of Financial Transactions Reporting Act, No. 6 of 2006 and other related rules issued by the Financial Intelligence Unit of Central Bank. This session will focus on Anti-Money Laundering and Countering the Financing of Terrorism (AML&CFT) responsibilities imposed under the Customer Due Diligence Rules, No. 1 of 2018 for the Accountants Company Secretary Providers and Auditors.

Date & Time : 17 April, 2018 from 5.30pm to 7.30pm
Venue : Level 6, Members Lounge, CA Sri Lanka
Investment: Free of Charge

The 2nd National Risk Assessment on ML/TF – 2018

The Financial Intelligence Unit of Sri Lanka with the technical assistance from the World Bank conducted a three-day workshop on National Risk Assessment on Money Laundering & Terrorist Financing with the participation of 120 experts from different stakeholder institutions representing both public and private sector at Center for Banking Studies in Rajagiriya during April 4 – 6, 2018.

Notice on Appointing Compliance Officials for Businesses and Professions in Designated Non-Financial Sector - March. 13, 2018

The following Designated Non-Finance Businesses (DNFBs) as defined in the Financial Transactions Reporting Act, No. 6 of 2006 (FTRA) are hereby informed of the obligation of appointing a Compliance Officer under the requirements of Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) laws and regulations in Sri Lanka.

Notice to the Customers of Non-Financial Businesses and Professions

• Casinos
• Real Estate Agents
• Dealers in Precious Metals, Dealers in Precious & Semi-Precious Stones
• Lawyers, Notaries, Other Independent Legal Professionals
• Accountants
• Trusts and Company Service Providers

The FIU-Sri Lanka has instructed the above businesses/professions to obtain the information in order to identify their customers, as per the provisions of the Financial Transactions Reporting Act, No. 06 of 2006.

CDD Rules for Designated Non-Financial Businesses and Professions, No. 01 of 2018

The Financial Intelligence Unit of Sri Lanka issued rules through the Extraordinary Gazette Notification on Designated Non-Financial Business (Customer Due Diligence) Rules No. 1 of 2018 dated January 10, 2018 which should be complied by the following Designated Non-Financial Businesses and Professions in Sri Lanka.

Casinos, Real Estate Agents, Dealers in Precious Metals and Dealers in Precious and Semi-Precious Stones, Lawyers, Notaries, Other independent Legal Professionals and Accountants, Trusts and Company Service Providers

Guidelines on ML & TF Risk Management for Financial Institutions, No. 01 of 2018

The Financial Intelligence Unit issued Guidelines on Money Laundering & Terrorist Financing (ML & TF) Risk Management for Financial Institutions, No. 01 of 2018 on 11th January 2018. These Guidelines will come into force with immediate effect and shall be read together with the Financial Transactions Reporting Act, No. o6 of 2006 and the Financial Institutions (Customer Due Diligence) Rules, No. o1 of 2016. This guideline shall be treated as minimum instructions and indications to identify and assess the risk of ML & TF in their businesses and take effective measures to mitigate the identified risk.

Awareness Programme on “AML/CFT Framework and Obligations for Dealers in Precious Metals and Precious Stones”

An awareness programme on “Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Framework and Obligations for Dealers in Precious Metals and Precious Stones” was conducted by the Financial Intelligence Unit (FIU), for the dealers in the gem and jewellery sector on 10th January 2018 at the Central Bank of Sri Lanka.

Appointment of Director FIU -Sri Lanka

It is hereby notified that Mr. D M Rupasinghe has been appointed as the Director, Financial Intelligence Unit of Sri Lanka with effect from 19.12.2017. You may forward your correspondence to the Director via,
Mr. D M Rupasinghe
Director
Financial Intelligence Unit
Central Bank of Sri Lanka
No. 30,Janadhipathi Mawatha,
Colombo 01,
Sri Lanka.
+94 112477509; Email: dfiu@cbsl.lk

FIU-Sri Lanka Entered into a MOU with Sri Lanka Police

In terms of the provisions of the Financial Transactions Reporting Act, No. 6 of 2006 (FTRA), the Financial Intelligence Unit (FIU) of Sri Lanka entered into a Memorandum of Understanding (MOU) with Sri Lanka Police on December 13, 2017 at the Central Bank of Sri Lanka to share information/intelligence in order to facilitate investigations and prosecutions on money laundering, terrorist financing and other related offences.

Awareness on Mandatory Obligations for Designated Non-Financial Businesses in Sri Lanka

The Financial Intelligence Unit conducted an awareness programme on the “draft Customer Due Diligence (CDD) Rules for Designated Non-Financial Businesses (DNFBs)” on November 30, 2017.

FIU-Sri Lanka Entered into a MOU with Financial Information Unit of the State of Qatar

In terms of the provisions of the Financial Transactions Reporting Act, No. 6 of 2006 (FTRA), the Financial Intelligence Unit (FIU) of Sri Lanka entered into a Memorandum of Understanding (MOU) with the Financial Information Unit of the State of Qatar on October 26, 2017 to exchange financial intelligence in order to facilitate investigations and prosecutions on money laundering and terrorist financing.

20th Annual Meeting of the APG, Colombo, Sri Lanka, July 15-21, 2017

Sri Lanka hosted the 20th Annual Meeting of the Asia/Pacific Group on Money Laundering (APG) in Colombo during July 15-21, 2017 with the participation of 408 delegates from 41 member countries of the APG and 24 observers from several international observer organisations. The event was graced by His Excellency the President, Maithripala Sirisena and Hon. Mangala Samaraweera, Minister of Finance and Mass Media.

Press Release

Suspicious Transactions (Format) Regulations of 2017

The Hon. Minister of Finance has issued the Suspicious Transactions (Format) Regulations of 2017 in terms of the Section 29 read with Section 7 of the Financial Transactions Reporting Act. No. 6 of 2006 (FTRA), through the Gazette Extraordinary No. 2015/56 dated April 21, 2017. These regulations shall apply to every Institution within the meaning of Section 33 of the FTRA.

STR (Format) Regulations of 2017

Risk-based Supervision and Guidelines for the MVTS Providers

The Financial Intelligence Unit adopted Risk-based Supervision subsequent to the issuance of the Risk-based CDD Rules for the Financial Institutions in 2016. Accordingly, Risk-based Supervision procedures of the FIU were informed to the Licensed Banks and Licensed Finance Companies through the Circular no. 01/17. Further, FIU issued a Guideline on AML/CFT compliance obligations of Money or Value Transfer Service (MVTS) providers through the Circular no. 02/17 in 2017. The said Circulars are available from the below links.

Circular no. 01/17

Circular no. 02/17

FIU-Sri Lanka Entered into a MOU with Department for Registration of Persons

In terms of the provisions of the Financial Transactions Reporting Act, No. 6 of 2006 (FTRA), the Financial Intelligence Unit (FIU) of Sri Lanka entered into a Memorandum of Understanding (MOU) with the Department for Registration of Persons on January 11, 2017 at the Central Bank of Sri Lanka to exchange information in order to facilitate investigations and prosecutions on money laundering and terrorist financing.

2nd AML/CFT Symposium for the Financial Sector, December 2016

The Financial Intelligence Unit of Sri Lanka in association with the Association of Compliance Officers of Licensed Banks – Sri Lanka (ACOB) conducted the 2nd AML/CFT Symposium for the Financial Sector at the auditorium of Centre For Banking Studies, Central Bank of Sri Lanka, Rajagiriya on December 16, 2016. Dr. Indrajit Coomaraswamy, Governor delivered the key note address. Experts from the AUSTRAC (FIU-Australia), Sri Lanka Police, Sri Lanka Customs, and Attorney General’s Department made the presentations on contemporary topics followed by Q&A sessions. 122 participants from Financial Institutions attended the sessions.

FIU-Sri Lanka Entered into a MOU with Department of Inland Revenue

In terms of the provisions of the Financial Transactions Reporting Act, No. 6 of 2006 (FTRA), the Financial Intelligence Unit (FIU) of Sri Lanka entered into a Memorandum of Understanding (MOU) with the Department of Inland Revenue on October 19, 2016 at the Central Bank of Sri Lanka to exchange information in order to facilitate investigations and prosecutions on money laundering and terrorist financing.

FIU-Sri Lanka Entered into a MOU with Department of Immigration and Emigration

In terms of the provisions of the Financial Transactions Reporting Act, No. 6 of 2006, the FIU-Sri Lanka entered into a Memorandum of Understanding (MOU) with the Department of Immigration and Emigration on September 27, 2016 at the Central Bank of Sri Lanka to receive information in order to facilitate investigations and prosecutions on money laundering and terrorist financing.

Awareness Programme on Customer Due Diligence (CDD) New Rules

Financial intelligence Unit of Sri Lanka conducted awareness programme on Customer Due Diligence (CDD) New Rules at the Central Bank’s conference hall for the Compliance Officers of reporting institutions and the relevant officers of Regulatory Authorities such as Bank Supervision Department, Department of Supervision of Non-Bank Financial Institutions and the Securities and Exchange Commission of Sri Lanka during April 26, 28 and 29, 2016. 191 delegates actively participated the three sessions conducted on this programme.

Eighth Meeting of BIMSTEC Sub Group on Combating the Financing of Terrorism

The Eighth Meeting of the BIMSTEC Sub-Group on Combating the Financing of Terrorism was held at the Galle Face Hotel, Colombo from 16-17 March 2016. The meeting was hosted by the Financial Intelligence Unit of Sri Lanka in coordination with Ministry of External Affairs. Mr. Arjuna Mahendran, Governor of the Central Bank of Sri Lanka delivered the key note address of the meeting. The meeting was attended by about 31 delegates from seven member countries and chaired by Mr. H Amaratunga, Director, FIU-Sri Lanka.

Governor's Key Note Address

Video   Watch the Inaugural Session

A Recent Incident of Attempted Wire Transfer Fraud Highlighted the Importance of Undertaking Proper KYC/CDD

As per the Section 2(2) of the Financial Transactions Reporting Act No 6 2006 (FTRA), all financial institutions have to identify and verify the identity of all their customers based on the Know Your Customer/ Customer Due Diligence Rules (KYC/CDD) issued by the Financial Intelligence Unit (FIU) Sri Lanka.
Further, as per the Section 7 of the FTRA, every financial institution is required to file a suspicious transactions report with the FIU promptly if it identifies any transaction which is unusual/suspicious.
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FIU Sri Lanka Signs MOU with FIU Panama

The FIU-Sri Lanka signed a Memorandum of Understanding (MOU) with Financial Analysis Unit of Panama (Financial Intelligence Unit of Panama) on February 02 2016, on the sidelines of the Egmont Group of Financial Intelligence Units’ Meetings held in Monte Carlo, Monaco. This MOU was signed in terms of the provisions of the Financial Transactions Reporting Act No 6 of 2006 to share financial intelligence to counter Money Laundering and Financing of Terrorism. The FIU-Sri Lanka has signed MOUs with 29 FIUs so far.

AML/CFT Symposium for Financial Sector, December 2015

The Financial Intelligence Unit – Sri Lanka in collaboration with the Association of Compliance Officers of Licensed Banks – Sri Lanka (ACOB) conducted the AML/CFT Symposium for Financial Sector at the auditorium of People’s Bank, Colombo 01 on December 11, 2015. Mr. P Samarasiri, Deputy Governor delivered the key note address. Resource persons from the World Bank and senior officers of Attorney General’s Department made the presentations on various topics followed by panel discussions. More than 190 participants from Financial Institutions attended the sessions.

Simplification of Customer Due Diligence Measures, December 2015

A workshop on Customer Due Diligence (CDD) measures organized by the Financial Intelligence Unit – Sri Lanka was held at the Centre for Banking Studies (CBS) - Central Bank of Sri Lanka (CBSL), Colombo during December, 08 - 10 2015. The resource persons from the World Bank conducted the workshop. Participants were consisted of the private sector, regulators, officers of Attorney General’s department and Legal Draftsman’s Department. The workshop was mainly to discuss the new Risk-Based CDD rules for the Financial Sector.

Report on National Risk Assessment on ML/TF

The stakeholders can download the sanitized version of the report on first National Risk Assessment (NRA) on Money Laundering (ML) and Terrorist Financing (TF) conducted with the assistance of the World Bank by the working groups of eighty members representing various organizations such as Law Enforcement Agencies, Regulatory Authorities of financial sector and non-financial sector, and the private sector.

Download NRA report

2nd Mutual Evaluation of Sri Lanka on ML/TF

The second Mutual Evaluation (ME) on Sri Lanka was conducted in 2014 by the APG with the intention of assessing the Sri Lanka’s AML/CFT framework vis-à-vis the new FATF standards of 2012 on AML/CFT. Sri Lanka’s AML/CFT legal and institutional framework as well as the effectiveness of its implementation was assessed by a panel of 8 experts representing APG member countries and the APG Secretariat. The report was adopted at the APG Plenary held in Auckland, New Zealand in July, 2015.

Download ME report