The Financial Intelligence Unit of Sri Lanka (FIU – Sri Lanka) was designated in March 2006, in terms of the provisions of the Financial Transactions Reporting Act No. 6 of 2006 (FTRA) under the Ministry of Finance and Planning.
The FIU functions as an independent institution within the administrative structure of the Central Bank of Sri Lanka since February 2007, in terms of the Order made by H.E the President under the FTRA to be the institution designated to operate the FIU to enhance its operations and to act efficiently to discharge its statutory functions to strengthen Sri Lanka’s AML/CFT/CPF framework by leveraging on the policy-making and regulatory capabilities of the Central Bank.
Sri Lanka’s AML/CFT/CPF regime comprises of three pieces of legislations;
- Convention on the Suppression of Terrorist Financing Act, No. 25 of 2005 (CSTFA)
- Prevention of Money Laundering Act, No. 5 of 2006 (PMLA)
- Financial Transactions Reporting Act, No. 6 of 2006 (FTRA)
The Convention on the Suppression of Terrorist Financing Act, No. 25 of 2005 (CSTFA)
CSTFA was enacted on 8th August, 2005 in order to give effect to Sri Lanka’s obligations as a signatory to the International Convention on the Suppression of Terrorist Financing adopted by the United Nations on January 10th, 2000. The Act prohibits the financing of terrorist acts, terrorists and terrorist organizations. Further, the CSTFA has provisions for freezing of terrorist financing related assets and forfeiture of such assets. CSTFA has been further strengthened through the amendments brought to the act in 2011 and 2013.
The Prevention of Money Laundering Act, No.5 of 2006 (PMLA)
PMLA which prohibits the Money Laundering was enacted on 6th March 2006. It also sets out the necessary measures to combat money laundering such as freezing, property tracking and forfeiture of assets related to money laundering. The PMLA was further amended in 2011.
The Financial Transactions Reporting Act, No.6 of 2006 (FTRA)
This Act was certified on 6th March, 2006 and to provide for the collection of data relating to suspicious financial transactions to facilitate the prevention, detection, investigation and prosecution of the offence of money laundering and the financing of terrorism respectively; to require Institutions to undertake due diligence measures to combat money laundering , the financing of terrorism and financing of proliferation of weapons of mass destruction.; to identify the FIU which will be responsible for monitoring the activities of all Institutions to whom this Act applies; and to provide for matters connected therewith or incidental thereto.
