16. Replacement of section 14 of the principal enactment

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

Section 14 of the principal enactment is hereby repealed and the following section is substituted therefor: -

14. Every Institution shall-

(a)

appoint an officer at the senior management level as the

Compliance Officer who shall be responsible for ensuring the

Institution’s compliance with the requirements of this Act;

“Appointment of a

Compliance

Officer and duties and functions of the Institution relating to compliance.

(b)

appoint such other officers as may be necessary to assist the

Compliance Officer and provide sufficient other resources to ensure that the duties, functions and obligations of the Institution under this Act are properly performed and discharged;

(c)

establish and maintain procedures and systems to –

(i)

identify, understand and assess money laundering, terrorist financing and financing of proliferation of weapons of mass destruction risks and develop policies and procedures for the management and mitigation of those risks applying a risk-based approach;

(ii)

implement targeted financial sanctions against terrorist financing and financing of proliferation of weapons of mass destruction;

(iii)

implement the customer due diligence requirements under section 2;

Financial Transactions Reporting

(iv)

implement procedures for record keeping and retention requirements under section 4;

(v)

implement the process of ongoing due diligence of customers and scrutiny of transactions under section 5;

(vi)

implement the process of reporting requirements under sections 6, 7, 8, and 22;

(vii)

ensure compliance with section 15 where applicable and any regulation, rule or direction made or issued under this Act;

(viii)

make its officers, employees and agents aware of the measures, policies and procedures adopted by the Institution as required by this Act and regulations, rules, directions, circulars and guidelines made or issued thereunder and any other law in force for the time being in relation to the combatting of money laundering, terrorist financing and financing of proliferation of weapons of mass destruction;

(ix)

screen all persons before hiring them as employees or agents; and

(x)

ensure compliance with other measures imposed on Institutions by this Act and regulations, rules, directions and guidelines made or issued thereunder;

(d)

establish an audit function to test its procedures and systems for the compliance with the provisions of this Act; and

(e)

train its officers, employees and agents to identify suspicious transactions.”.

Read on from s 17