Financial system strength requires effective coordination, PM tells AML watchdog

Sri Lanka's Prime Minister has underscored the importance of coordinated implementation in strengthening the nation's defences against financial crime, speaking at the launch of the country's Third Mutual Evaluation on Anti-Money Laundering, Countering the Financing of Terrorism and Countering Proliferation Financing.

Addressing the inaugural meeting, the Premier highlighted that a robust financial system depends not merely on the establishment of institutions and regulatory frameworks, but critically on how effectively these mechanisms operate in concert with one another. The assessment, conducted by the Asia/Pacific Group on Money Laundering (APG), represents a comprehensive review of Sri Lanka's compliance with international standards on financial crime prevention.

The mutual evaluation process examines the country's technical compliance and effectiveness in implementing anti-money laundering and counter-terrorism financing measures across government agencies, financial institutions and designated non-financial businesses. The APG, comprising 41 member jurisdictions across the region, conducts these evaluations to identify gaps and recommend strengthening measures.

Sri Lanka's participation in the third mutual evaluation cycle reflects ongoing international scrutiny of the nation's financial system integrity. The assessment comes as countries across South and Southeast Asia face increasing pressure to demonstrate robust frameworks against illicit financial flows and terrorism financing.