| dc.description.abstract | Sri Lanka’s anti-money laundering (AML) and counter
terrorism financing (CTF) frameworks face significant
challenges in the digital age, as emerging technologies
like cryptocurrencies, digital transactions, and online
banking outpace existing regulations. This study
investigates these challenges, evaluates the effectiveness
of
Sri
Lanka’s current policies, and suggests
improvements based on international best practices.
Specifically, it explores the impact of digital technologies
on AML and CTF frameworks, focusing on their ability
to detect and prevent financial crimes. The research
draws on primary and secondary data, including
literature reviews and case studies from countries like
Singapore, the United Kingdom, and Australia, which
have successfully adapted to digital financial crimes.
Key recommendations include the establishment of a
Digital Financial Intelligence Unit (DFIU) within Sri
Lanka’s Financial Intelligence Unit (FIU), utilizing
advanced data analytics and AI to monitor digital
transactions. Additionally, it advocates for the use of
blockchain technology to improve transaction
traceability and calls for a formal public-private
partnership to drive innovation in AML and CTF
processes. The study also emphasizes the need for
comprehensive training programs for law enforcement,
regulatory authorities, and financial institutions to
address emerging technological trends and financial
crime
techniques.
By
implementing
these
recommendations, Sri Lanka can enhance its AML and
CTF frameworks, better adapt to digital threats, and
strengthen financial security and stability in line with
international standards. | en_US |
