The Financial Intelligence Unit (FIU) has taken firm action against two leading casino operators and a major state-owned bank in Sri Lanka for serious failures in complying with anti-money laundering (AML) and counter-terrorist financing (CTF) laws. A total of Rs.6.5 million in fines—equal to about US $22,000—was imposed during the first half of 2025.
These laws are designed to stop illegal money from entering the financial system and to ensure that businesses are not unknowingly helping criminals or terrorists move their funds. Sectors like banking and gaming are expected to follow these laws strictly.
The penalties were announced by the Central Bank of Sri Lanka, which oversees the FIU. These enforcement actions are part of ongoing efforts to strengthen financial discipline and oversight in high-risk sectors such as casinos and banking.
Bally’s Limited and Bellagio Limited Fined for Ignoring Basic Customer Checks
In March 2025, the FIU fined Bally’s Limited and Bellagio Limited—two of Sri Lanka’s licensed casino operators—Rs.1.5 million each for failing to carry out even the most basic customer due diligence procedures. The casinos did not verify customer identities thoroughly and failed to cross-check them against the United Nations (UN) sanction lists, a vital step in identifying potential links to terrorism or criminal activities.
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Moreover, both Bally’s and Bellagio lacked systems to monitor suspicious behavior, did not reassess risks when UN sanction lists were updated, and failed to maintain proper records of customer identity and business transactions. These omissions are considered high-risk given the vulnerability of the gaming industry to money laundering activities.
The penalties were imposed under the Financial Transactions Reporting Act, which sets out strict rules for financial and non-financial institutions to prevent the flow of illegal funds. According to the FIU, these actions aim to enforce compliance and protect the financial system from abuse.
National Savings Bank Faces Heavier Fine for Multiple Violations
In a separate enforcement action, the National Savings Bank (NSB)—a state-owned institution—was fined Rs.3.5 million in April 2025. The bank committed multiple regulatory breaches, including the failure to report large-scale cash and electronic fund transfers over Rs.1 million. As per regulations, such transactions must be reported to the FIU within 31 days, but the bank repeatedly failed to meet this deadline.
More alarmingly, NSB continued to carry out transactions through accounts that had been suspended by the FIU, directly violating compliance protocols. The bank also did not update or maintain its UN-designated sanction lists, which are necessary for screening clients and transactions that might pose financial or security risks.
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These serious lapses triggered a higher penalty compared to the casino operators, highlighting the responsibility placed on state-run institutions to set an example in following anti-money laundering laws and maintaining public trust.
Rs.6.5 Million in Fines Credited to Government Fund
The total fines collected from both the casinos and National Savings Bank during the first half of 2025 amounted to Rs.6.5 million, or roughly US $22,000. All these funds have been credited to the government’s Consolidated Fund, according to the Central Bank of Sri Lanka.
Although the inspections did not uncover any direct connections to internationally sanctioned individuals or groups, the FIU emphasized that the fines serve to reinforce institutional controls and ensure stricter compliance moving forward. The financial and non-financial sectors alike are expected to uphold strong systems for risk assessment, transaction monitoring, and sanction list updates to protect the country from being used for illegal financial flows.
The FIU, in collaboration with the Central Bank, continues to take regulatory action to ensure that organizations of all types—whether private casinos or public banks—follow the laws designed to prevent money laundering and terrorist financing in Sri Lanka.