Anti Money Laundering and Anti Terrorist Financing Legislation

The following Acts have been passed in connection with the above.

- PREVENTION OF MONEY LAUNDERING ACT NO.5 OF 2006.

This Act prohibits Money Laundering in Sri Lanka and provides for the necessary measures to combat and prevent Money Laundering. The Act also specifies the offences under the Law, the duty to disclose information, punishment for offences etc.

-  CONVENTION ON THE SUPPRESSION OF TERRORIST FINANCING ACT NO.25 OF 2005.

As a signatory to the International Convention on the Suppression of Terrorist Financing this legislative provision gives effect to Sri Lanka’s obligations under the above Convention. The Act specifies the offence of terrorist financing, the punishment for such offences etc.

FINANCIAL TRANSACTIONS REPORTING ACT NO.6 OF 2006.

The Act provides for the collection of data relating to suspicious financial transactions to facilitate the prevention, detection, investigation and prosecution of the offences of Money Laundering and the Financing of Terrorism. It also requires certain institutions to undertake due diligence measures and follow Know Your Customer concepts to combat Money Laundering and the Financing of Terrorism. The Act also provides for the setting up of a Financial Intelligence Unit to regulate the compliance of the Act.

Withholding Tax on interest

Regulations pertaining to recovery of Withholding Tax on interest paid by Banks and other Financial Institutions were revised under Section 133 of the Inland Revenue Act No.10 of 2006 as amended. Details are provided under `Matters of Public Interest'