Abstract:
This study investigates the effectiveness of anti-money laundering procedures of Sri
Lankan financial institutions. This research has used both primary and secondary for
the purpose of analysis and the sources of data include interviewed data from the
managers of financial institutions and publications of financial institutions. In order to
evaluate the anti-money laundering procedures of financial institutions this study has
selected banking sector. And from banking sector ten commercial banks, three
specialized banks and two finance companies have been selected. Prepositions of
this study are Local banks use anti money laundering counter measures given by
authorities to prevent money laundering, local banks have limitations for anti-money
laundering procedures and Local banks use anti money laundering compliances
which are up to international standards. Through result of the study it can be
concluded that Sri Lankan financial institutions adhere to Financial Action Task Force
recommendations and all the institutions follow regulations incorporated in Sri Lanka
with regard to anti money laundering but still there are limitations for anti-money
laundering procedures in Sri Lanka.
