The Central Bank of Sri Lanka’s Financial Intelligence Unit (FIU) has imposed administrative penalties totalling Rs. 14.6 million on 11 institutions for non-compliance with the Financial Transactions Reporting Act (FTRA), according to a statement reported by EconomyNext.
The penalties were levied on financial institutions and designated non-financial businesses and professions between October 2025 and March 2026 for breaches of the law, which underpins the country’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework.
Several banks and finance companies were fined for failing to report cash transactions or electronic fund transfers exceeding Rs. 1 million within required timelines. LB Finance PLC was fined Rs. 1 million for not reporting nine such transactions, while Cargills Bank PLC was penalised Rs. 2 million for missing 18 electronic transfers and failing to maintain an updated list of designated persons under UN Security Council resolutions. LOLC Securities Limited and Janashakthi Finance PLC each paid Rs. 1 million for similar shortfalls, and Indian Overseas Bank incurred Rs. 1 million for lapses including inadequate customer verification for wire transfers.
The heaviest penalty, Rs. 3 million, went to Citizens Development Business Finance PLC, which the regulator said had maintained business relationships with three individuals listed under UN regulations without freezing assets or notifying authorities within 24 hours. Swarnamahal Jewellers Ltd was fined Rs. 2 million for failures in customer due diligence and record-keeping.
The FIU said the enforcement actions cut across institutions of varying size and type, pointing to persistent weaknesses in transaction reporting, sanctions screening and record-keeping despite years of reform.
