Sri Lanka’s Central Bank is intensifying a coordinated crackdown on money laundering and terrorist financing, placing NGOs, casinos and real estate ventures under heightened scrutiny in line with global FATF standards.
A senior government official has revealed that the Central Bank is strengthening inter-agency cooperation to combat money laundering and terrorist financing, aligning Sri Lanka with international standards set by the Financial Action Task Force. This effort marks a significant shift toward tighter financial oversight and stronger institutional coordination.
As part of this initiative, the Central Bank’s Financial Intelligence Unit is finalizing Memorandums of Understanding with multiple government institutions to formalize cooperation and information sharing. These agreements aim to close long-standing gaps that have weakened the detection of illicit financial flows, particularly those crossing national borders.
Key agencies involved in this coordinated framework include the Department of Inland Revenue, the Police Department, the Attorney General, the Auditor General, commercial banks and financial institutions, the Commission to Investigate Bribery and Corruption, Sri Lanka Customs, the Controller of Imports and Exports, the Registrar of Companies, the Department of Immigration and Emigration, the Department of Excise and the Gaming Authority of Sri Lanka.
Officials acknowledged that the absence of formal coordination mechanisms has previously hampered investigations into suspicious financial activity. The MoUs are expected to be signed by November, after which Sri Lanka will be able to seek direct assistance from the Paris-based Financial Action Task Force for cross-border investigations.
“Even in tax-related matters, institutions suspected of money laundering are now being examined more rigorously,” officials said, adding that individuals linked to such entities will also face scrutiny.
Investigations will extend to non-profit organizations, casinos, offshore accounts and real estate developers, sectors often exploited for illicit financial activities. The FATF framework provides a comprehensive global standard to safeguard the integrity of the international financial system.
