Sri Lanka's measures to combat money laundering and terrorist financing

Publication details

Language

English

Country

Sri Lanka

The Asia/Pacific Group on Money Laundering (APG) completed its assessment of Sri Lanka's anti-money laundering and counter-terrorist financing (AML/CFT) system. The assessment is a comprehensive review of the effectiveness of Sri Lanka's AML/CFT system and its level of compliance with the FATF Recommendations. 

The report was formally adopted by at the APG Annual Meeting in July 2015.  The findings of this assessment have also been reviewed and endorsed by the FATF. 

Sri Lanka has a sound understanding of most of its money laundering threats and an acute understanding of terrorist financing risks, shaped by years of war between the Sri Lankan Government and the LTTE, that ended in 2009. Sri Lanka possesses the foundation for an effective AML/FT system but to date there has been limited demonstration of effectiveness with only one money laundering conviction. 

 

APG - Mutual Evaluation of Sri Lanka - 2015

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APG-Mutual-Evaluation-Report-Sri-Lanka-2015.pdf
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3 MB
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Technical Compliance

Ratings which reflect the extent to which a country has implemented the technical requirements of the FATF Recommendations.

Sri Lanka Mutual Evaluation 2015

R.1 - Assessing risk & applying risk-based approach
PC
R.2 - National cooperation and coordination
PC
R.3 - Money laundering offence
LC
R.4 - Confiscation and provisional measures
PC
R.5 - Terrorist financing offence
C
R.6 - Targeted financial sanctions related to terrorism & terrorist financing
LC
R.7 - Targeted financial sanctions related to proliferation
NC
R.8 - Non-profit organisations
PC
R.9 - Financial institution secrecy laws
LC
R.10 - Customer due diligence
NC
R.11 - Record keeping
LC
R.12 - Politically exposed persons
NC
R.13 - Correspondent banking
NC
R.14 - Money or value transfer services
NC
R.15 - New technologies
PC
R.16 - Wire transfers
NC
R.17 - Reliance on third parties
NC
R.18 - Internal controls and foreign branches and subsidiaries
PC
R.19 - Higher-risk countries
NC
R.20 - Reporting of suspicious transactions
C
R.21 - Tipping-off and confidentiality
C
R.22 - DNFBPs: Customer due diligence
NC
R.23 - DNFBPs: Other measures
PC
R.24 - Transparency and beneficial ownership of legal persons
NC
R.25 - Transparency and beneficial ownership of legal arrangements
NC
R.26 - Regulation and supervision of financial institutions
PC
R.27 - Powers of supervisors
C
R.28 - Regulation and supervision of DNFBPs
NC
R.29 - Financial intelligence units
PC
R.30 - Responsibilities of law enforcement and investigative authorities
C
R.31 - Powers of law enforcement and investigative authorities
LC
R.32 - Cash couriers
PC
R.33 - Statistics
PC
R.34 - Guidance and feedback
PC
R.35- Sanctions
PC
R.36 - International instruments
LC
R.37 - Mutual legal assistance
PC
R.38 - Mutual legal assistance: freezing and confiscation
PC
R.39 - Extradition
LC
R.40 - Other forms of international cooperation
PC

C = compliant   |   LC = largely compliant     |   PC = partially compliant   |   NC = non-compliant

Effectiveness

Ratings that reflect the extent to which a country's measures are effective. The assessment is conducted on the basis of 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve.

Ratings that reflect the extent to which a country's measures are effective. The assessment is conducted on the basis of 11 immediate outcomes, which represent key goals that an effective AML/CFT system should achieve.

Sri Lanka Mutual Evaluation 2015

IO1
ME
IO2
LE
IO3
LE
IO4
LE
IO5
LE
IO6
LE
IO7
LE
IO8
LE
IO9
SE
IO10
LE
IO11
LE

HE = high level of effectiveness   |   SE = substantial level of effectiveness    |   ME = moderate level of effectiveness   |   LE = low level of effectiveness

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