5. Replacement of section 3 of the principal enactment

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

Section 3 of the principal enactment is hereby repealed and the following section is substituted therefor: -

3. (1) If an Institution is unable to comply with customer due diligence obligations as set out in section 2 or 5, such Institution –

(a)

shall not open the account, or commence business relationship or perform the transaction with the customer; or

“Procedure if customer due diligence obligations cannot be complied with.

(b)

shall terminate the business relationship with the customer.

(2)

Such Institution shall consider making a suspicious transaction report in relation to such customer under section 7:

Provided however, where such Institution suspects or has reasonable grounds to suspect the commission of the offence of money laundering, terrorist financing or financing of proliferation of weapons of mass destruction or any unlawful activity and if there are reasons to believe that conducting customer due diligence will tip-off the customer, such Institution shall not conduct customer due diligence and shall make a suspicious transaction report under section 7.”.

Read on from s 6