WEB BASED INFORMATION REPORTING SYSTEM IN SUBMITTING REGULAR REPORTS TO THE FINANCIAL INTELLIGENCE UNIT

1. We wish to draw your attention to our circular No. 4, dated 15th September 2006 and directive on 30th June 2008

on reporting Cash Transactions Reports (CTRs), Electronic Fund Transfer Reports (EFTs) and submission of Suspicious Transactions Reports (STRs) in terms of the provisions of the Section 6 and 7 of the Financial Transactions Reporting Act No. 6 of 2006 (FTRA) and Financial Transaction Regulation No. 1 of 2008 along with the order

issued on 25th June 2008.

2. Accordingly, all reporting institutions are required to report CTRs and EFTs exceeding Rs 1,000,000 or its equivalent

in any foreign currency to the Financial Intelligence Unit (FIU).

3. The FIU has now developed a new Information Technology tool, LankaFIN, to be used in submitting reports

electronically by Reporting Institutions to the FIU using a web based interface instead of the existing process of submitting reports with soft copies. Therefore, all Registered Finance Companies are requested to submit CTRs,

EFTs and STRs to the FIU using the internet based procedure, with effect from 1st December 2009 as per the

instructions given at annex I.

4. In order to comply with the legal requirements of the FTRA, reporting institutions are also required to submit

certified copies of STRs to the FIU.

5. To enable access to the LankaFIN System, all anticipating users are required to obtain the required username and

password from the FIU. Password requisition form is available in the LankaFIN website. ( https://lankafin.cbsl.lk)

6. Information reporting system through internet to the FIU will be effective from 1st December, 2009.

Yours faithfully,

Director

Financial Intelligence Unit

Cc: Compliance Officer

Annexure I

TERMS AND CONDITIONS FOR THE LankaFIN USERS

The website of the Financial Intelligence Unit (FIU) of the Central Bank of Sri Lanka (hereinafter called “LankaFIN”) provides Information about FIU, FIU related news, circulars and directives issued by the FIU and data reporting formats. Data reporting formats consist of Suspicious Transaction Reports (STRs), electronic files of Cash Transaction Reports (CTRs) and Electronic Funds Transfers (EFTs).

The home page of the LankaFIN can be accessed with the following web address, https://lankafin.cbsl.lk. Reporting officers should login to the respective links and require to forward the reports as indicated in the user manual which is available online on the web-site. This specific information technology tool consists of number of data security features and other encryptions. Users are subject to the LankaFIN terms and conditions as amended from time to time and regulations made under relevant legislations.

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User’s Responsibilities

1. User is required to make a formal application which is available on the LankaFIN login page to obtain Username. This needs to be submitted to the FIU with the required authorisation.

2. User undertakes not to access LankaFIN using defective or insecure software/equipment or in any manner which might adversely affect LankaFIN.

3. User must change the password assigned to him/her immediately after accessing LankaFIN for the first time and at regular intervals thereafter.

4. User shall inform LankaFIN immediately if he/she becomes aware of any unauthorised access or use of the “Username” and “Passwords” by unauthorised person. User needs to acknowledge that the Financial Intelligence Unit shall not be liable for any loss or damage that he/she may suffer due to unauthorised use of his/her Username and Password.

5. User shall keep his/her Username and Password strictly confidential and undertake not to reveal them to any person at anytime or under any circumstances.

6. If the Compliance Officer who is appointed as per the Section 14 of the Financial Transactions Reporting Act (FTRA) is unable to hold his office temporarily, it is required to obtain a new Username for the acting Compliance Officer from the FIU.

7. User shall keep all information, techniques, data and designs relating to LankaFIN completely confidential. User shall not disclose any of them to any other party.

8. User obligations relating to confidentiality will continue indefinitely and will not end with the expiry or termination of LankaFIN user facilities.

Data Submission

An IT tool has designed and linked up for required testing before Submission of data to the FIU. In case the tests are failed, the reports will not reach the FIU. Therefore users are advised to prepare the formats as specified in the LankaFIN manual and submit them accordingly. If the data formats are not prepared in line with required standards and /or if any mandatory fields are missing, reports may bounce back to the users resulting non submission of reports. Non-submission of reports would treat as non-compliance with the statutory provisions.

All reporting institutions are also required to submit certified copies of STRs immediately after submission of STRs through LankaFIN, as the submission of written STRs is a legal requirement in terms of the provisions of the FTRA.

The FIU wish to receive reports/submissions under the previous system in parallel to the new system until 15t h July, 2009. Therefore, all reporting institutions are required to equip with all necessary technical requirements and other administrative arrangements to meet the requirements.

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Ref.: 33/03/001/0029/002 International Operations Department

31 July 2009

To: All Licensed Commercial Banks