Two financial institutions fined under anti-money laundering laws

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The Financial Intelligence Unit (FIU) of the Central Bank said it has imposed penalties on two financial institutions, amounting to Rs.1.5 million, for the period from 1 October 2021 to 31 December 2021, for not complying with Anti-Money Laundering Laws.

The FIU, as the regulator for anti-money laundering and countering the financing of terrorism (AML/CFT) in the country, had imposed penalties for not complying with the provisions of Financial Transactions Reporting Act, No. 06 of 2006 (FTRA).

Accordingly, a Rs1 million penalty was imposed on Orient Finance PLC and a Rs 500,000 penalty on Lanka Credit and Business Finance Limited.

“Penalties were imposed mainly on the violations of Financial Institutions (Customer Due Diligence) Rules, No. 1 of 2016, in relation to the United Nations sanctions screening, customer identification and verification, suspicious transactions reporting and implementation of proper risk controls and mitigation measures,” a Central Bank statement said.