Sri Lanka, July 24 -- The recent decision by the Central Bank of Sri Lanka (CBSL) to impose penalties on several leading banks and financial institutions for violating the Financial Transactions Reporting Act, No. 6 of 2006 (FTRA), raises serious concerns about the commitment of these institutions to anti-money laundering and countering the financing of terrorism (AML/CFT) obligations.

Banks occupy a position of public trust.

Their responsibility extends far beyond generating profits. Strict compliance with AML/CFT regulations is fundamental to preserving the integrity of Sri Lanka's financial system and maintaining public confidence. Any lapse in compliance, whether deliberate or due to weak internal controls, can expose the country...