The Financial Intelligence Unit (FIU) of Sri Lanka entered into a Memorandum of Understanding (MOU) with the Insurance Regulatory Commission of Sri Lanka (IRCSL) recently at the Central Bank of Sri Lanka to focus on Anti-Money Laundering (AML) /Countering the Financing of Terrorism (CFT) in the Insurance Sector.

 The IRCSL, as the regulatory and supervisory body of the Insurance Sector, will conduct risk-based AML/CFT supervision and share supervisory findings with the FIU to ensure sector compliance with the AML/CFT framework, the FIU said in a statement.

 Mrs. Damayanthi Fernando, Director General of the IRCSL and Mr. D M Rupasinghe, Director, FIU signed the MOU on behalf of the respective institutions in the presence of Dr. Indrajit Coomaraswamy, the Governor of the Central Bank of Sri Lanka, who is also the Chairman of the AML/CFT National Coordinating Committee and Mr. Mano Tittawella, Chairman of the IRCSL.

 “Compliance with the AML/CFT framework of the country is essential for the Insurance Sector participants too in the prevention of money laundering, terrorist financing and connected financial crimes which could threaten the stability of domestic as well as global economic and financial systems,” the statement said.

This MoU is the 38^th signed by the FIU as per terms of the provisions of the Financial Transactions Reporting Act, No. 6 of 2006 (FTRA). The other parties include 37 foreign counterparts as well as 6 domestic government agencies such as Sri Lanka Customs, Department of Immigration and Emigration, Inland Revenue Department, Department for Registration of Persons, Sri Lanka Police and Securities and Exchange Commission of Sri Lanka.