The regulator for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) in the country, the Financial Intelligence Unit (FIU) of the CBSL imposed penalties amounting to Rs. 2.3 million in total for the period from 01.06.2020 to 31.12.2020 on three institutions to enforce compliance on Financial Institutions.
Details of the penalties imposed by the FIU from 01.06.2020 to 31.12.2020 are as follows:
Richard Pieris Finance Ltd - Penalty 300,000, Softlogic Finance PLC - Penalty Rs 1,000,000 and Siyapatha Finance PLC - Penalty Rs 1,000,000.
By virtue of the powers vested under Section 19 (1) read together with section 19 (2) of the Financial Transactions Reporting Act, No. 06 of 2006 (FTRA), financial penalties are imposed on Institutions for non-compliances with the provisions of the FTRA.
The penalty may be prescribed taking into consideration the nature and gravity of relevant non- compliance of the Financial Institution or the Designated Non-Finance Business.
The Monetary Board of the Central Bank of Sri Lanka 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, CBSL said in a press release.
Penalties were imposed mainly on the violations of Financial Institutions (Customer Due Diligence) Rules, No. 1 of 2016 in relation to sanctions screening.