Speaker Certifies New Laws Against Dirty Money, Terror Financing and Financial Crimes

COLOMBO (News 1st); Speaker Dr. Jagath Wickramaratne endorsed three key amendment bills aimed at strengthening Sri Lanka’s legal framework against money laundering, terrorist financing and other financial crimes.

The Prevention of Money Laundering (Amendment) Bill, the Financial Transactions Reporting (Amendment) Bill and the Convention on the Suppression of Terrorist Financing (Amendment) Bill were certified by the Speaker on August 4, following their passage in Parliament on July 9, 2026.

The Prevention of Money Laundering (Amendment) Bill was passed with the special majority required under the Supreme Court's determination relating to Clause 14. The Financial Transactions Reporting (Amendment) Bill was approved with amendments, while the Convention on the Suppression of Terrorist Financing (Amendment) Bill was passed without amendments.

The Prevention of Money Laundering (Amendment) Act is intended to further strengthen the existing legal framework for combating money laundering offences, improve the efficiency of financial crime investigations and align Sri Lanka’s legal system with international standards.

Among its key provisions are the expansion of the scope of money laundering offences, the introduction of legal mechanisms enabling action against money laundering even in the absence of a conviction for a predicate offence, and stronger procedures for freezing and managing suspicious assets.

The legislation also introduces provisions relating to the management and disposal of restrained property, confiscation of criminal assets, expanded investigative powers, enhanced international cooperation and tougher penalties for money laundering offences.

The Financial Transactions Reporting (Amendment) Act is designed to further strengthen Sri Lanka’s compliance with international standards relating to anti-money laundering measures, countering the financing of terrorism and preventing the financing of the proliferation of weapons of mass destruction.

Key features of the legislation include formalising risk-based approaches and customer due diligence requirements, broadening the responsibilities of reporting institutions, bringing virtual asset service providers within the scope of financial businesses subject to the law, and introducing provisions relating to the establishment and strengthening of the Financial Intelligence Unit.

The Act also extends transaction suspension orders from seven days to fourteen working days, expands administrative penalties for non-compliance, provides for the establishment of a National Committee on anti-money laundering and counter-terrorist financing, strengthens implementation of targeted financial sanctions linked to United Nations Security Council resolutions and introduces new definitions to improve legal clarity. It also addresses inconsistencies between the Sinhala and English texts of the Financial Transactions Reporting Act No. 6 of 2006.

Meanwhile, the Convention on the Suppression of Terrorist Financing (Amendment) Act introduces amendments to the Convention on the Suppression of Terrorist Financing Act No. 25 of 2005 with the objective of further strengthening Sri Lanka’s legal framework to combat the financing of terrorism.

The amendments are expected to enhance Sri Lanka’s compliance with international standards and United Nations conventions relating to counter-terrorist financing, while also supporting the country’s preparations for an upcoming mutual evaluation process.

Authorities say the new laws will strengthen the integrity of Sri Lanka’s financial system, reinforce national security and demonstrate the country's continued commitment to fulfilling its international obligations under the Financial Action Task Force framework.

Accordingly, the three Bills have now become law as the Prevention of Money Laundering (Amendment) Act No. 16 of 2026, the Financial Transactions Reporting (Amendment) Act No. 17 of 2026 and the Convention on the Suppression of Terrorist Financing (Amendment) Act No. 18 of 2026.