The Central Bank of Sri Lanka (CBSL) has imposed a combined Rs. 9.5 million fine on seven companies, including two banks, two non-bank financial institutions (NBFIs), a casino, a jewellery firm, and a telecom provider, for failing to comply with anti-money laundering regulations.
The Financial Intelligence Unit (FIU), which regulates anti-money laundering and counter-terrorism financing (AML/CFT), collected Rs. 2 million from LOLC Finance PLC, Rs. 1 million each from Fintrex Finance PLC, Pan Asia Bank Corporation PLC, and National Development Bank PLC, Rs. 500,000 from Rank Entertainment Ltd. (Casino Marina), Rs. 2 million from Bullion Exchange Jewellers, and Rs. 2 million from Mobitel Ltd.
The penalties were credited to the Consolidated Fund.
The fines were levied under the Financial Transactions Reporting Act (FTRA) for various lapses, including failure to report large electronic fund transfers, verify customers against United Nations-designated sanctions lists, implement AML/CFT policies, and maintain proper internal controls.
The CBSL noted that, despite these shortcomings, no business relationships with sanctioned individuals or entities were found during on-site inspections.
The regulator stressed that penalties were determined based on the nature and seriousness of the violations and underscored the importance of strict compliance with anti-money laundering and counter-terrorism financing standards.
Leave a comment