In a significant move to bolster financial integrity, Sri Lanka’s Insurance Regulatory Commission (IRCSL), in collaboration with the Financial Intelligence Unit (FIU), recently hosted a dedicated awareness session on Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) for insurance brokers. The event, held at the Centre for Banking Studies of the Central Bank of Sri Lanka, drew around 140 senior representatives from various insurance broking firms across the country.
The session focused on practical compliance essentials, including the Customer Due Diligence (CDD) rules (No. 01 of 2019), how to identify and report suspicious transactions, and employee due diligence protocols. At the same time, regulators used the opportunity to introduce participants to the newly established Market Intermediary Licensing and Supervision division within IRCSL, aimed at strengthening oversight across the sector.
The awareness drive also underscored the regulatory imperative ahead of Sri Lanka’s upcoming Mutual Evaluation by the Asia/Pacific Group, scheduled for the first quarter of 2026, signaling a national push to enhance compliance readiness.
What This Means for the Industry:
- Reinforced Regulatory Alignment: Broking firms will be equipped to better align their operations with AML/CFT standards, essential for both legal compliance and industry credibility.
- Enhanced Oversight Structure: Introduction of the new supervisory division promises more structured monitoring, guidance, and enforcement within the insurance intermediary landscape.
- Stronger AML Capabilities: Through focused training on CDD, escalation of STRs, and internal conduct, the session aimed to elevate the overall AML vigilance of insurance brokers.
This awareness initiative reflects IRCSL’s proactive leadership in elevating regulatory standards and reinforcing anti-financial crime measures—helping safeguard Sri Lanka’s insurance sector against evolving risks.
