The Financial Intelligence Unit (FIU) has imposed administrative penalties totaling Rs. 3 million on financial institutions for non-compliance with the Financial Transactions Reporting Act (FTRA) between 1 January and 30 April. 

The penalties were levied under the authority of Section 19(1) in conjunction with Section 19(2) of the FTRA, considering the severity and nature of the non-compliance. These funds have been credited to the Consolidated Fund as part of the FIU's efforts to enforce compliance with Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regulations.

DFCC Bank PLC was fined Rs. 1 million on 7 March, with payment completed by 26 March. The penalty was imposed due to the bank's failure to conduct adequate Customer Due Diligence (CDD) on an individual, including verifying the source of funds as mandated by the Financial Institutions (Customer Due Diligence) Rules, No. 1 of 2016, reiterated by Circular No: 04/21 for deposits made under the Finance Act, No. 18 of 2021. Additionally, the bank could not provide a valid reason for opening an account for an individual whose permanent address was significantly distant from the branch location. Moreover, the bank failed to recognize suspicious activities and did not file a Suspicious Transaction Report (STR).

Sampath Bank PLC faced a penalty of Rs. 2 million imposed on 28 March, which was paid by 24 April. The bank was penalised for maintaining accounts without properly identifying the account holders and for establishing business relationships with a designated individual listed in the Extraordinary Gazette No. 2124/32, dated May 23, 2019, under Regulation 4(7) of the United Nations Regulations No. 1 of 2012, pursuant to United Nations Security Council Resolution (UNSCR) 1373. The bank also failed to promptly inform the FIU about the financial assets and resources held by the designated individuals, as required by the FIU/UNSCR-1373/Directives No. 1 issued to all Licensed Banks and Licensed Finance Companies.

These actions by the FIU highlight the ongoing efforts to ensure financial institutions in Sri Lanka adhere to AML/CFT regulations, thereby maintaining the integrity of the financial system and mitigating risks associated with money laundering and terrorist financing.