The Central Bank of Sri Lanka (CBSL) has taken strict action against banks for their non-compliance with the provisions of the Financial Transactions Reporting Act, No. 6 of 2006 (FTRA). In a recent statement, the CBSL announced that it has imposed financial penalties on six banks as a consequence.
During the period from 17th November 2022 to 31st March 2023, fines totaling Rs. 5.5 million were collected from these banks to ensure compliance with the regulations set forth by the Financial Transactions Reporting Act.
According to the CBSL, the Pradeshiya Sanwardhana Bank faced a penalty of Rs. 500,000, while the fines imposed on HDFC Bank, Seylan Bank, Sampath Bank, Hatton National Bank, and People’s Bank amounted to Rs. 1 million each.
The Financial Transactions Reporting Act (FTRA) aims to combat money laundering, terrorist financing, and other illicit activities by establishing robust mechanisms for reporting and monitoring financial transactions. It is crucial for financial institutions to adhere to the guidelines and provisions outlined in this act to maintain the integrity of the financial system.
The Central Bank’s firm stance on enforcing compliance reflects its commitment to safeguarding the country’s financial sector and preventing illegal activities. The penalties imposed on these banks serve as a reminder to all financial institutions to diligently adhere to the regulations stipulated by the FTRA.
The CBSL’s actions demonstrate its dedication to maintaining transparency and accountability within the banking industry. By enforcing penalties for non-compliance, the Central Bank aims to promote a culture of responsible financial practices and ensure the overall stability and security of Sri Lanka’s financial system.
