Two foreign banks and a local jeweller penalised by the Central Bank

Two foreign banks and a local jeweller have been imposed fines/penalties by the Central Bank for failure to adhere to rules and regulations of Sri Lanka’s the Financial Transactions Reporting Act, No. 6 of 2006 (FTRA).

The banking regulator said in a media release that 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 (AML/CFT), the FIU (Financial Intelligence Unit) collected penalties totalling Rs.2.75 million from these three organisations in total from May to October 2024.

A penalty of Rs.1 million was imposed on Pakistan’s MCB Bank on July 26 for failure to report some Electronic Fund Transfer (EFT) transactions related to trade finance. A sum on Rs.1 million was imposed on the Bank of China for failure to report some Electronic Fund Transfer (EFT) transactions while a penalty of Rs.750,000 was imposed on Vogue Jewellers (Pvt) Ltd in October for failure to obtain identification documents of customers who conducted cash transactions in Sri Lankan Rupees.