FIU imposes penalties to finance companies for violation of customer due diligence rules

Jan 11, 2021 (LBO) – Financial Intelligence Unit (FIU) as the regulator for Anti-Money Laundering and Countering the Financing of Terrorism in the country, has imposed penalties amounting to Rs. 2.3 million in total for the period from 01.06.2020 to 31.12.2020 to enforce compliance on financial institutions.

The Monetary Board of the Central Bank has decided to publish the penalties imposed on the financial institutions in order to improve the AML/CFT compliance level in the country.

Penalties were imposed mainly on the violations of Financial Institutions (Customer Due Diligence) Rules, No. 1 of 2016 in relation to sanctions screening.

Details of the penalties imposed by the FIU from 01.06.2020 to 31.12.2020 are as follows:

Date of ImpositionInstitutionAmount (LKR)
15.10.2020Richard Pieris Finance Ltd300,000.00
04.11.2020Softlogic Finance PLC1,000,000.00
25.11.2020Siyapatha Finance PLC1,000,000.00