The Central Bank (CB) this week reiterated strict rules pertaining to money laundering (ML) amidst a recent (2016) report that shows that 759 Suspicious Transaction Reports (STRs) were reported in 2016. Of this, 716 alone related to money laundering, according to the report from the Financial Intelligence Unit (FIU). Earlier this week the FIU in [...]

Business Times

Over 700 money laundering complaints in 2016

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The Central Bank (CB) this week reiterated strict rules pertaining to money laundering (ML) amidst a recent (2016) report that shows that 759 Suspicious Transaction Reports (STRs) were reported in 2016.

Of this, 716 alone related to money laundering, according to the report from the Financial Intelligence Unit (FIU).

Earlier this week the FIU in a public notice said that designated non-finance businesses (DNFBs) are now obligated to implement proper policies and procedures to stop money laundering and terrorist financing attempts using these businesses and professions under the customers due diligence rules.

The notice referred to stringent Anti-Money Laundering / Combating Financing of Terrorism (AML/CFT) criteria in five sectors which also included professionals and accountants.

Since the end of internal conflict of the country in 2009, STRs on Terrorist Financing (TF) have not been significant, at 43, while STRs relating to ML have showed a significant increase especially relating to drug dealing, frauds, cheating etc, an official told the Business Times.

He added that statistics for 2017 are still being compiled. Money Laundering is the process by which proceeds from a criminal activity are disguised to conceal their illicit origin.

The FIU notice, meanwhile, said the sectors include casinos, gambling houses and/or conducting of a lottery, including a person who carries on such a business through the Internet when their customers engage in financial transactions equal to or above the prescribed threshold real estate agents, when they are involved in transactions for their clients in relation to the buying and selling of real estate, dealers in precious metals and dealers in precious and semi-precious stones, including but not limited to, metals and stones covered by the National Gem and Jewellery Authority Act, No. 50 of 1993 when they engage in cash transactions with a customer, equal to or above the prescribed threshold, lawyers, notaries, other independent legal processionals and accountants as defined in Section 33 of the Financial Transaction Reporting Act (FTRA) and Trust or company service providers as defined in Section 33 of the FTRA.

“Records of transactions and of correspondence relating to transactions and records of all reports furnish to the FIU, which is the authority to monitor AML/CFT compliance in Sri Lanka should be retained for a period of six years from the date of transaction, correspondence and the furnishing of the report. Records of identity obtained should be retained for six years from the date of closure of the business relationship. Where any record is subject to an on-going investigation, such records should be retained until such time where the institution is informed by the relevant authority,” the notice said.

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