Public sector lender Indian Bank Ltd on Monday said the financial intelligence unit of the Central Bank of Sri Lanka has imposed a monetary penalty of LKR 2 million on the bank for failing to comply with the provisions of Sri Lanka’s Financial Transactions Reporting Act.
“…we have to inform you that the Central Bank of Sri Lanka -Financial Intelligence Unit has imposed a monetary penalty of Sri Lankan Rupees (LKR) Two Million (LKR 2,000,000) i.e. approx. Indian Rupees (INR) Five Lakh Eighty Five Thousands (₹5.85 Lakh) on the bank for failure to conform to the provisions of Financial Transactions Reporting Act, No.6 of 2006 (FTRA) of Sri Lanka and rules,” Indian Bank said in a regulatory filing.
The penalty pertains to non-conformity with the regulatory framework under the FTRA and associated rules and regulations. Indian Bank operates in Sri Lanka through two branches, located in Colombo and Jaffna.
In response to the penalty, Indian Bank has stated that it has implemented necessary preventive measures to ensure compliance and avoid similar incidents in the future. “The bank and its aforesaid Branches operating in Sri Lanka have taken necessary preventive actions to avoid such recurrence in future,” the lender said.
