Financial Transactions Reporting (Amendment) Act 2026 · As enacted
24. Insertion of new PART IIIa in the principal enactment
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
The following new Part is hereby inserted immediately after section 21 of the principal enactment and shall have effect as PART IIIa of that enactment: -
“PART IIIa
ESTABLISHMENT OF THE NATIONAL
COMMITTEE ON ANTI-MONEY LAUNDERING,
COUNTERING THE FINANCING OF TERRORISM
AND FINANCING OF PROLIFERATION OF
WEAPONS OF MASS DESTRUCTION
21a.
“Establishment of the National Committee on Anti-Money Laundering, Countering the Financing of Terrorism and Financing of Proliferation of Weapons of Mass Destruction
There shall be established a National
Committee on Anti-Money Laundering,
Countering the Financing of Terrorism and
Financing of Proliferation of Weapons of
Mass Destruction (in this Act referred to as the “National Committee”) to coordinate and oversee the implementation of the national policy of Sri Lanka on Anti-Money
Laundering, Countering the Financing of
Terrorism and Financing of Proliferation of
Weapons of Mass Destruction and provide necessary guidance in the formulation of such national policy.
21b.
Composition of the National Committee
The National Committee shall consist of the following members: -
the
Governor of the
Central Bank;
the
Secretary to the
Ministry of the Minister;
the
Secretary to the
Ministry of the Minister assigned the subject of
Foreign Affairs;
the
Secretary to the
Ministry of the Minister assigned the subject of
Justice;
the
Secretary to the
Ministry of the Minister assigned the subject of
Defence;
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the
Secretary to the
Ministry of the Minister assigned the subject of Public Security or
Internal Security;
the Attorney-General;
the Inspector-General of
Police; and
the Director - General of the
Commission to Investigate
Allegations of Bribery or
Corruption.
The National Committee may invite to the meetings of the National Committee-
any public officer; or
any other person whose expertise or knowledge is deemed necessary for the performance and discharge of the duties and functions of the National
Committee.
All Deputy Governors of the Central
Bank shall participate in the meetings of the
National Committee.
The Head of the Financial Intelligence
Unit shall function as the Secretary to the
National Committee.
21c.
Chairperson of the National Committee
The Governor of the Central Bank shall be the Chairperson of the National
Committee.
In the absence of the Chairperson of the National Committee, the Secretary to the Ministry of the Minister shall act as the
Chairperson of the National Committee.
21d.
Meetings of the National Committee
A meeting of the National Committee shall be convened at least quarterly. Any special meeting may be convened by the
Chairperson, at his discretion or at the written request of a member.
21e.
Duties and functions of the National Committee
The National Committee shall, in the implementation of the national policy of Sri Lanka on Anti-Money Laundering,
Countering the Financing of Terrorism and
Financing of Proliferation of Weapons of
Mass Destruction, perform and discharge the following duties and functions: -
to ensure that money laundering, terrorist financing and financing of proliferation of weapons of mass destruction risks in Sri Lanka are identified and assessed effectively and that the assessments of such risks are up-to-date;
to ensure that information on the results of the risk assessments is provided to all relevant competent authorities and self-regulatory authorities and Institutions;
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to assist or advice the Cabinet of
Ministers through the Minister to ensure that the national policy of Sri Lanka on Anti-Money
Laundering,
Countering the
Financing of
Terrorism and
Financing of
Proliferation of
Weapons of Mass Destruction is formulated in accordance with the risks identified, and such national policy is regularly reviewed;
to oversee the implementation of such national policy by the relevant stakeholders;
to advice and guide the relevant stakeholders on the development of strategies for the implementation of such national policy in order to control and mitigate money laundering, terrorist financing and financing of proliferation of weapons of mass destruction risks in line with the international standards set down by the Financial
Action Task Force;
to ensure coordination amongst relevant stakeholders for the effective implementation of such national policy and strategies;
to monitor the progress of the implementation of the national policy and related strategies relating to combating money laundering, countering terrorist financing and financing of proliferation of weapons of mass destruction, and make general or specific recommendations to the relevant stakeholders, if necessary, with timelines for the implementation of such recommendations;
to give either general or specific directions to any regulatory authority or stakeholder for the implementation of recommendations and decisions of the National Committee based on the national policy, strategies, recent trends, typologies and emerging threats in relation to combating money laundering, countering terrorist financing and financing of proliferation of weapons of mass destruction and, if necessary to specify timelines for the implementation of such directions;
to make recommendations through the Minister to the Cabinet of
Ministers, relating to actions, policies or strategies that may be required for combating money laundering, countering terrorist financing and financing of proliferation of weapons of mass destruction;
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to appoint sub-committees, as and when necessary, from among the members of the National
Committee or any public officer or any other person whose expertise or knowledge is deemed necessary, to assist the National Committee in the performance and discharge of its duties and functions referred to in this section;
to submit annually, and whenever requested, reports to the Cabinet of Ministers, through the Minister setting out the progress regarding the implementation of such national policy and matters incidental thereto; and
to submit reports to the Cabinet of
Ministers, through the Minister, on any matter on an urgent basis.
21f.
Faliure to implement the directions issued under section 21e (1) Where a regulatory authority or stakeholder, on whom a direction or recommendation has been issued under section 21e, does not intend to fully or partly implement such direction or recommendation, or is unable to implement fully or partly such direction or recommendation, such regulatory authority or stakeholder shall communicate the reasons therefor to the
National Committee, within a reasonable period from the date of receipt of such direction or recommendation.
If the National Committee is not satisfied with the reasons so stated under subsection (1) or is of the view that such regulatory authority or stakeholder has without any valid reason failed to implement such direction or recommendation, or the implementation of such direction or recommendation is not up to the expected standards, the National
Committee may forthwith refer such fact along with the reasons for such referral, to the
Cabinet of Ministers through the Minister, for appropriate action.
21g.
Cabinet of Ministers to issue directions to stakeholders
The Cabinet of Ministers may –
direct any stakeholder to implement any recommendation made by the National Committee under paragraph (i) of section 21e;
take appropriate action relating to the referral made by the National
Committee under subsection (2) of section 21f.
Every stakeholder or regulatory authority as the case may be, shall adhere to or comply with any direction issued or action taken by the Cabinet of Ministers under subsection (1).”.
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