SEC Enforces Srilankan Compliance Officers To Conduct Adequate AML Measures

Richard M. October 6, 2023 3 minute read

The Security Exchange Commission of Sri Lanka (SECS) and Colombo Stock Exchange (CSE) recently arranged a meeting with compliance officers of all forms of market agents to strengthen security and enhance investor trust.

Sri Lankan regulatory officers conference with different compliance officers of various companies to continue their efforts to bolster market standards and investor confidence. This meeting was a valuable opportunity to engage financial companies in the latest AML regulatory measures and secure practices. SECS chairman, Faizal Shah, stated the importance of regulatory compliance and that the compliance officer of the companies is a crucial management person who is empowered to act with independence, authority, and responsibility to prevent companies from various financial scams.

They also urged to appoint a Compliance Officer to award or register as a legal business and comply with verification standards. Compliance Officers are required to submit an official statement attesting to their compliance with the regulatory measures fit and adequate standards. SECS added if the compliance officer resigns from their position, the company will promptly inform the SECS and appoint his successor as quickly as possible but with the SECS’s approval. The chairman stated that the SECS would investigate the reason behind the resignation, particularly focusing on any internal companies involved or forced to resign. He also added that the SECS demands Compliance with the requirements set out in the securities rules that apply to Market Intermediaries.

Compliance officers also demand full control of the company policies due to crucial responsibility linked with their role in the business. They emphasised that the compliance officers’ decisions should be independent, and a company should not interfere. The Compliance Officer will directly report to the board members, including the audit and risk assessment committee. They also emphasised that companies needed a board-approved adherence policy prior to creating this handbook in order to direct the Compliance Officer in carrying out the legal procedure.

The seminar stressed the value of conforming to the regulatory framework established by the Financial Intelligence Unit of Sri Lanka (FIU) with reference to Customer Due Diligence (CDD) standards and Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT) laws.