The Financial Intelligence Unit (FIU) tasked with countering money laundering and terrorist finance was started on a recommendation of a financial actions task force of 34 countries.

The FIU, was established in the Central Bank under the Financial Transactions Reporting Act, No. 6 of 2006 in March 2006.

It collects information and investigates suspicious transactions and provides information for police to act to stop the banking system from being used for unlawful activities.

"Since the FIU was established as a department of the Central Bank, it has been able to draw on the expertise of the human resources available in the bank," the central bank said.

"Currently the unit is managed by experienced officers who possess multiple qualifications and also necessary skills in their respective fields."

FIU operates as an independent unit of the central bank, the monetary authority said. It has a reporting structure through an assistant and deputy governor which the bank says has allowed the FIU to involve the senior management of the central bank in decision making.

"FIU investigations into terrorist financing activities have resulted in a number of suspicious bank accounts being suspended and legal action initiated with the support of the law enforcement authorities to prosecute the parties concerned," the central bank said.