Sri Lanka AML penalties totalled Rs.9.5 million between July and September 2025, as the Central Bank’s Financial Intelligence Unit enforced compliance with anti-money laundering regulations across banks, finance companies, and other reporting institutions.
Sri Lanka AML penalties imposed on banks, finance firms, and corporates
Sri Lanka’s financial regulator has intensified enforcement actions against non-compliant institutions, with Sri Lanka AML penalties amounting to Rs.9.5 million collected during the third quarter of 2025. The Central Bank of Sri Lanka’s Financial Intelligence Unit confirmed that administrative penalties were imposed on several reporting entities for breaches of the Financial Transactions Reporting Act, No. 6 of 2006.
According to the Financial Intelligence Unit, the penalties were collected from July to September 2025 as part of its mandate to strengthen compliance under the country’s Anti-Money Laundering and Countering the Financing of Terrorism framework. Institutions penalised during this period included LOLC Finance, Fintrex Finance, National Development Bank, Pan Asia Banking Corporation, Bullion Exchange, Mobitel, and Rank Entertainment (Pvt) Ltd, which operates Casino Marina.
The Central Bank stated that the Sri Lanka AML penalties were determined after assessing the nature and severity of each institution’s regulatory lapses. The violations related to non-compliance with statutory obligations imposed on reporting institutions, including requirements linked to transaction monitoring, reporting standards, and regulatory disclosures under the Financial Transactions Reporting Act.
As Sri Lanka’s designated regulator for AML and CFT activities, the Financial Intelligence Unit is responsible for supervising compliance across a broad range of entities, including banks, finance companies, casinos, telecom operators, and other designated non-financial businesses. The latest enforcement action highlights the regulator’s continued focus on strengthening oversight beyond the traditional banking sector.
In its official statement, the Central Bank emphasised that penalties are imposed not as a revenue-generating exercise, but as a deterrent to ensure institutions adhere to regulatory expectations. By enforcing penalties proportionate to the gravity of violations, authorities aim to promote stronger internal controls, improved reporting accuracy, and enhanced risk management practices across the financial system.
The Rs.9.5 million collected through Sri Lanka AML penalties during the quarter has been credited to the Consolidated Fund, in line with statutory requirements. This process ensures transparency and proper accounting of regulatory fines collected by the state.
Regulatory experts note that enforcement activity has increased in recent years as Sri Lanka works to align its financial oversight framework with international standards. Strong AML and CFT compliance is viewed as critical not only for domestic financial stability, but also for maintaining correspondent banking relationships and safeguarding the country’s reputation in global financial markets.
The inclusion of entities from diverse sectors such as banking, finance, gaming, and telecommunications underscores the expanding scope of regulatory supervision. Authorities have repeatedly reminded reporting institutions of their obligation to implement effective compliance programmes, conduct customer due diligence, and report suspicious transactions in a timely manner.
Failure to meet these obligations can expose institutions to financial penalties, reputational risk, and increased supervisory scrutiny. The Central Bank has indicated that continued non-compliance could result in further enforcement measures, including higher penalties or additional regulatory action where necessary.
The latest round of Sri Lanka AML penalties sends a clear signal that regulatory compliance remains a priority for monetary authorities. As financial activity becomes more complex and interconnected, regulators are expected to maintain strict oversight to mitigate risks related to illicit financial flows and financial crime.