Financial Intelligence Unit fines 2 more institutions for non-compliance

The Financial Intelligence Unit (FIU) has fined two private sector institutions collectively Rs. 4 million for non-compliance following its regular quarterly reviews. 

As the regulator for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) in the country, the FIU said it imposed penalties, totalling Rs. 4 million, for the period from 1 January 2021 to 31 March 2021 to enforce compliance on financial institutions.

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 on screening, customer identification and verification, suspicious transactions reporting and implementation of proper risk controls and mitigation measures.

FIU said on 20 January, Kanrich Finance was fined Rs. 1 million and on 18 February, Commercial Bank was fined Rs. 3 million.

Following review between June and December 2020, FIU fined Richard Pieris Finance Ltd. (Rs. 300,000), Softlogic Finance Plc and Siyapatha Finance Plc (Rs. 1 million each).

The action is by virtue of the powers vested under Section 19 (1) read together with section 19 (2) of the Financial Transactions Reporting Act, No. 06 of 2006 (FTRA), financial penalties are imposed on Institutions for non-compliance with the provisions of the FTRA.

The penalty may be prescribed taking into consideration the nature and gravity of relevant non- compliance of the financial institution or the designated non-finance business.