The MoU signed Monday at the Central Bank in Colombo will allow the FIUs of the two countries to share financial information to facilitate investigations on money laundering and terrorist financing (ML/TF) which are often internationally connected activities.

The Financial Intelligence Units globally adopt MoUs to cooperate with each other with the exchange of information since a greater coordination among Financial Intelligence Authorities is needed to fight against money laundering and terrorist financing.

According to the Central Bank, the MoU signed with JAFIC will facilitate greater cooperation and coordination in exchanging information between two intelligence units.

Sri Lanka established the FIU in 2006 under the Financial Transactions Reporting Act (FTRA) No.6 of 2006 and the Central Bank operates it. The FIU Sri Lanka has so far signed MoUs with FIUs of 20 countries.

Sri Lanka FIU last year signed MoUs with Mongolia, Russia, Saudi Arabia and the US. In addition Sri Lanka has MoUs with Australia, Afghanistan, Belgium, Bangladesh, Canada, Cambodia, Fiji, India, Indonesia, Malaysia, Nepal, Philippines, Slovenia, South Africa, Solomon Islands, South Korea.