CBSL fines three institutions – Islandnews

The Financial Intelligence Unit (FIU) has collected penalties amounting to Rs. 2.75 million in total from three institutions for non-compliance with the provisions of the Financial Transactions Reporting Act (FTRA). 

The Central Bank of Sri Lanka said the penalties were collected from MCB Bank Ltd, Bank of China Ltd, and Vogue Jewellers (Pvt) Ltd from May to October 2024. 

The Central Bank went on to note that by virtue of the powers vested under Section 19 (1) read together with section 19 (2) of the FTRA, penalties are imposed on Institutions for non-compliance with the provisions of the FTRA. 

The companies had failed to obtain identification documents for customers conducting cash transactions in Sri Lankan Rupees or any foreign currency equivalent to or exceeding USD 15,000. Additionally, they neglected to maintain and retain records of these identification documents, the Central Bank said.

The penalty may be prescribed taking into consideration the nature and gravity of relevant non-compliance of the Institutions.

Accordingly, as Sri Lanka’s regulator for Anti-Money Laundering and Countering the Financing of Terrorism, the FIU collected the said penalties to enforce compliance on Institutions. 

The Central Bank added that the money collected as penalties was credited to the Consolidated Fund. (Islandnews)