As part of its on-going review of compliance with the AML/CFT standards, the Financial Action Task Force (FATF) said that since November 2017, when Sri Lanka made a high-level political commitment to work with the FATF and APG to strengthen the effectiveness of its AML/CFT regime and address any related technical deficiencies, Sri Lanka has taken steps towards improving its AML/CFT regime, including by issuing CDD rules for DNFBPs.
FATF said Sri Lanka should continue to work on implementing its action plan to address its deficiencies, including by:
(1) enacting amendments to the MACMA to ensure that mutual legal assistance may be provided on the basis of reciprocity;
(2) issuing any necessary guidance and ensuring that implementation of the CDD rules has begun, by way of supervisory actions;
(3) enhancing risk-based supervision and outreach to FIs and high-risk DNFBPs, including through prompt and dissuasive enforcement actions and sanctions, as appropriate;
(4) providing case studies and statistics to demonstrate that competent authorities can obtain beneficial ownership information in relation to legal persons in a timely manner;
(5) issuing a revised Trust Ordinance and demonstrating that implementation has begun; and
(6) establishing a TFS regime to implement relevant UNSCRs related to Iran, and demonstrating effective implementation on this and the UN Regulation related to the DPRK. (FATF)