Fines imposed by the Central Bank's FIU for two financial institutions

Financial penalties are imposed on Institutions for non-compliance with the terms of the Financial Transactions Reporting Act, No. 06 of 2006 (FTRA) under the authorities given under Section 19 (1) read along with Section 19 (2) of the FTRA. The penalty may be imposed depending on the nature and severity of the Financial Institution's relevant noncompliance.

 

As a result, the FIU, as Sri Lanka's regulator for anti-money laundering and counter-terrorist financing (AML/CFT), imposed penalties of Rs. 3.0 million on Financial Institutions from April 1, 2021 to June 30, 2021 to ensure compliance. The penalties were collected and credited to the Consolidated Fund.

 

Penalties were levied primarily for violations of the Financial Institutions (Customer Due Diligence) Rules, No. 1 of 2016 in regard to UN sanctions screening, continued monitoring of transactions conducted during the life of a business relationship with a customer, and other infractions, creating and maintaining procedures and systems to ensure the process of risk monitoring and mitigation.

 

Details of the penalties imposed by the FIU from 1 April 2021 to 30 June 2021 are as follows.

 

Date of Imposition	Institution	Amount (LKR)
28 May 2021	Union Bank of Colombo PLC	2,000,000.00
31 May 2021	DFCC Bank PLC	1,000,000.00

 

Sources:  Newswire.lk