Penalties for non-compliance in 2Q 2021 | Sunday Observer

Penalties for non-compliance in 2Q 2021

25 July, 2021

The Financial Inteligence Unit (FIU), Sri Lanka’s regulator for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT), imposed penalties amounting to Rs. 3.0 million from  April 1 to June 30  on financial institutions.

The money collected as penalties were credited to the Consolidated Fund.

Penalties were imposed mainly for violation of Financial Institutions (Customer Due Diligence) Rules, No. 1 of 2016 in relation to the United Nations sanctions screening, ongoing scrutiny of transactions undertaken throughout the course of the business relationship with a customer, establishing and maintaining procedures and systems to ensure the process of monitoring and implementing proper risk controls and mitigation measures. 

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-compliance 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.