Sri Lanka’s central bank breaches two financial companies for due diligence
ECONOMYNEXT – Sri Lanka’s central bank said two financial firms had been sanctioned for lack of customer due diligence by the Financial Intelligence Unit.
The Central Bank of Sri Lanka (CBSL) said the Anti-Money Laundering and Terrorist Financing (AML/CFT) regulator, the FIU, has levied penalties totaling $1.5 million rupees for the period from October 1, 2021 to December 31, 2021.
Orient Finance, a subsidiary of Janashakthi Insurance, was fined one million rupees.
Another financial institute named Lanka Credit and Business Finance had been charged five hundred thousand.
CBSL said the two companies had been disciplined for failing to comply with the Financial Institutions (Customer Due Diligence) Rules No. 1 of 2016 (CDD Rules) in relation to procedures for screening United Nations sanctions.
“It was observed during the on-site examination that Orient Finance PLC had not implemented systems and procedures to maintain the complete list of persons and entities designated under the relevant United Nations Security Council resolutions United, screen its potential customers at the time of onboarding, as required by the CDD rule,” CBSL said.
CBSL stated that it was necessary to screen existing customer base or existing business relationships when any of the relevant UNSC lists were updated to ensure that no business relationships were owned by or linked to the one of the entities or persons included in the updated designated lists. . (Colombo/June 29/2022)