Indian Bank Fined by Central Bank of Sri Lanka, Know Why
Public sector lender Indian Bank has been fined ₹5.85 lakh (LKR 2 million) by the Financial Intelligence Unit of the Central Bank of Sri Lanka for non-compliance with financial transaction reporting regulations. The penalty was imposed under Sri Lanka’s Financial Transactions Reporting Act (FTRA) for failing to adhere to prescribed rules and regulations.
Penalty Details
In a regulatory filing on Monday, December 23, Indian Bank disclosed that the penalty was related to its failure to comply with the Financial Transactions Reporting Act, No. 6 of 2006, and associated rules. The bank operates two branches in Sri Lanka, located in Colombo and Jaffna, which were impacted by the regulatory non-compliance.
Bank’s Response and Preventive Measures
Indian Bank assured stakeholders that it has taken corrective measures following the penalty. “The bank and its branches in Sri Lanka have implemented necessary preventive actions to avoid a recurrence of such incidents in the future,” the bank stated.
Regulatory Filing Statement
The bank clarified in its filing:
“The Central Bank of Sri Lanka – Financial Intelligence Unit has imposed a monetary penalty of Sri Lankan Rupees (LKR) 2,000,000 (approx. ₹5.85 lakh) for failure to conform to the provisions of the Financial Transactions Reporting Act, No. 6 of 2006 (FTRA) and related rules.”
Focus on Compliance
The penalty highlights the importance of strict adherence to financial transaction reporting laws. Indian Bank has emphasized its commitment to maintaining regulatory compliance to prevent similar issues in the future.
This fine serves as a reminder to financial institutions operating internationally about the necessity of adhering to local financial regulations and reporting standards.
