December 24, Colombo (LNW): The Central Bank of Sri Lanka’s Financial Intelligence Unit (FIU) has imposed a fine on Indian Bank, a state-owned entity, for failing to adhere to the regulations set forth by the Financial Transactions Reporting Act (FTRA) No.6 of 2006.
The penalty, amounting to 2 million Sri Lankan rupees (roughly Rs 5.8 lakh), was disclosed by the bank in a notice to the stock exchange on Monday, according to a report by The Times of India.
Indian Bank, which operates two branches in Sri Lanka—one in Colombo and another in Jaffna—has stated that it is taking immediate corrective measures to ensure compliance with local financial regulations and to prevent any future occurrences of similar violations.
The bank expressed its commitment to strengthening its internal processes to align with the legal requirements under Sri Lankan law.
Despite the fine, the bank refrained from providing further details on the specifics of the violation, as it did not respond to a request for clarification from The Times of India.
It remains unclear exactly which aspects of the FTRA the bank failed to meet, though such regulations typically concern the monitoring and reporting of financial transactions to prevent money laundering and other illicit financial activities.
