Terror Funding

Sept 23, 2011 (LBO) – Sri Lanka’s parliament has passed changes to laws against money laundering and terrorist financing, broadening their scope and enabling police to freeze funds. The amendments make the island’s anti-money laundering and Countering Financing of Terrorism (AML/CFT) laws “fully compliant with the international standards,” a statement from the central bank’s financial intelligence unit said.

The laws are based on recommendations by the Financial Action Task Force, an inter-governmental body incorporated by the G7 group of advanced countries to work as global policy setter on AML/CFT, it said.

“The newly amended laws will strengthen the AML/CFT regime and will facilitate the implementation initiatives undertaken by the Financial Intelligence Unit of the Central Bank, law enforcement agencies and prosecutors.”

Key features of the amendments include applicability of terrorist financing law to include citizens of Sri Lanka and non-citizens while present in Sri Lanka.

They also define funds to include assets of every kind, be it tangible or intangible, movable or immovable which are kept in Sri Lanka or outside Sri Lanka.

Terrorist financing o