Sri Lanka prepares for key anti-money laundering evaluation ahead of global scrutiny

Tuesday, 11 February 2025 02:07 - - {{hitsCtrl.values.hits}}

Appoints high-level task force on Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT)

Sri Lanka is set to undergo its third Mutual Evaluation on Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT), a process coordinated by the Asia Pacific Group on Money Laundering (APG).

The assessment, which is expected to begin soon, will be a critical test of the country’s compliance with global financial regulations.

During this upcoming Mutual Evaluation, Sri Lanka is required to demonstrate technical compliance with the 40 recommendations of the Financial Action Task Force (FATF) — the global policy setter on AML/CFT and their effective implementation through 11 immediate outcomes.

Failure to meet these standards could see Sri Lanka face greater international scrutiny, including the risk of being placed back on FATF’s “grey list”, a designation that can deter foreign investment and compliance international transactions.

In response, the Government has ramped up efforts to close regulatory loopholes. The Cabinet of Ministers has approved an action plan, outlining the measures to rectify the remaining gaps in the AML/CFT framework which has been disseminated across key institutions including; the Attorney General’s Department, Sri Lanka Police, Sri Lanka Customs, Commission to Investigate Allegations of Bribery or Corruption, Ministry of Justice, Ministry of Defence, Ministry of Foreign Affairs, Ministry of Finance, Department of the Registrar of Companies, Inland Revenue Department, Department of Excise, Legal Draftsman’s Department, Registrar General’s Department, Securities and Exchange Commission of Sri Lanka, Insurance Regulatory Commission of Sri Lanka, Construction Industry Development Authority, National Gem and Jewellery Authority, National Secretariat for Non-Governmental Organisations and Department of Import and Export Control.

A dedicated AML/CFT Task Force, initially set up in 2023, has now been reconstituted with high-level ministerial representation under the direction of President Anura Kumara Dissanayake, ensuring Government’s support for this process and in alignment with its efforts to fight corruption in Sri Lanka. The newly formed taskforce will be chaired by Justice Buwaneka Aluwihare, PC – Retired Judge of the Supreme Court and will include Justice Minister of Harshana Nanayakkara, Labour Minister and Economic Development Deputy Minister Prof. Anil Jayantha Fernando, Finance and Planning Deputy Minister Dr. Harshana Suriyapperuma, Central Bank Senior Deputy Governor Dr. Nelumani Daulagala and Finance, Planning and Economic Development Ministry Additional Director General A.K.D.D.D. Arandara.

At its first meeting on 29 January, the Chairman and the members of the task force highlighted the strategic importance of the Mutual Evaluation and requested the full cooperation and coordinated assistance of each stakeholder institution to successfully face this crucial assessment.

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