🚨 CBSL FIU Appeals for Private Sector Support Ahead of APG Evaluation

• AML/CFT Compliance Status: Beneficial ownership transparency is Sri Lanka's sole non-compliant Financial Action Task Force (FATF) recommendation. Implementation of the Companies Act, No. 12 of 2025 framework is urgent ahead of the Third Mutual Evaluation by the Asia/Pacific Group (APG) in late October/early November. • Risks & Economic Impact: FIU Director General Dr. Subhani Keerthiratne warned that another FATF grey listing could severely harm correspondent banking relationships, worsen foreign investment, and raise corporate borrowing costs. IMF data reveals FATF grey listing causes an average 7.6% drop in foreign direct investment (FDI). • Core Vulnerabilities: National risk assessments highlighted private limited companies as key money laundering points, citing cases of phantom import payments directed overseas via shell entities controlled by hidden beneficial owners. Private sector stakeholders are urged to assist in establishing transparent records, with warnings that submitting false disclosures creates direct personal liability.