35. Insertion of new sections 29a, 29b and 29c in the principal enactment

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

The following new sections are hereby inserted immediately after section 29 of the principal enactment, and shall have effect as section 29a, 29b and 29c of that enactment: -

29a. (1) The Head of the Financial

Intelligence Unit may, subject to the provisions of this Act, make rules in respect of any matter for which rules are authorized or required to be made under this Act for the effective implementation of the provisions of this Act.

(2)

Without prejudice to the generality of the powers conferred by subsection (1), rules may be made in respect of the following matters: -

(a)

the official identification documents, or other reliable source documents, or information or data

“Rules.

or evidence that is required for identification or verification of any particular customer or class of customers;

(b)

the timing of the identification and verification requirements for the purposes of section 2;

(c)

the threshold for, or the circumstances or the manner in which, identification and verification requirements shall apply to transactions carried on by the customers of an Institution;

(d)

conducting of simplified customer due diligence measures;

(e)

record keeping, reporting obligations, identification of suspicious transactions, suspension of transactions, and customer screening;

(f)

application of risk-based approach as referred to in section 2;

(g)

identification or verification of the identity of the beneficial owner of a customer as referred to in section 2;

(h)

obtaining information in relation to the originator and beneficiary of, or any other related party to, any

Financial Transactions Reporting category of transaction as the Head of the Financial Intelligence Unit may deem necessary; and

(i)

sharing of information among

Institutions under subsection (6) of section 2.

(3)

The terms and conditions imposed by rules made under this section may vary in respect of different categories of Institutions, different categories of transactions or different categories of customers.

(4)

The Head of the Financial Intelligence

Unit shall, in making rules under this section, take into account the recommendations of the

Financial Action Task Force.

(5)

Every rule made under this section shall be published in the Gazette and shall come into operation on the date of such publication or on such later date as may be specified therein.

29b. The Head of the Financial Intelligence

Unit may issue directions, circulars or guidelines to Institutions, in writing, in relation to the implementation of the provisions of this

Act.

29c. All existing rules, directions, circulars and guidelines made or issued by the Financial Intelligence Unit under this Act shall be deemed to have been made or issued by the Head of the Financial Intelligence Unit appointed under section 14b.”.

Read on from s 36