SEC

SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA ශ්‍රී ලංකා සුරැකුම්පත් සහ විනිමය කොමිෂන් සභාව | இலங்கை பிணையங்கள் மற்றும் பரிவர்த்தனை ஆணைக்குழு

BY HAND

Ref: SEC/SUP/2026/01/003

07th January 2026

TO: ALL MARKET INSTITUTIONS AND MARKET INTERMEDIARIES INCLUDING DEPOSITORY PARTICIPANTS AND TRUSTEES OF COLLECTIVE INVESTMENT SCHEMES

Dear Sir/Madam,

GUIDELINES ON ANTI-MONEY LAUNDERING, COUNTERING THE FINANCING OF TERRORISM AND COUNTERING PROLIFERATION FINANCING FOR THE SECURITIES MARKET THAT ARE APPLICABLE AND RELEVANT TO ALL MARKET INSTITUTIONS AND MARKET INTERMEDIARIES INCLUDING DEPOSITORY PARTICIPANTS AND TRUSTEES OF COLLECTIVE INVESTMENT SCHEMES.

The Securities and Exchange Commission of Sri Lanka (SEC) by its Directive dated 03rd October 2025 informed all Market Institutions and Market Intermediaries including Depository Participants and Trustees of Collective Investment Schemes of the obligations imposed by Section 23 of the Financial Transactions Reporting Act No 06 of 2006 (FTRA) which has a duty cast on the SEC as the relevant supervisory authority of the securities market in Sri Lanka to ensure that all its regulatees comply with the provisions of the FTRA including verification through regular examinations.

In the above mentioned Directive the SEC brought attention to the fact that the Rules, Directions, Regulations, Guidelines and Circulars including the Financial Institutions (Customer Due Diligence) Rules, No 01 of 2016 (as amended in 2018) issued by the FIU shall apply to every Institution which engages in finance business and designated non-finance business to combat and prevent money laundering, terrorist financing and proliferation financing. Additionally, the SEC informed all Market Institutions and Market Intermediaries of the requirements and duties cast on every Institution to comply with the provisions set out in the Prevention of Money Laundering Act No 05 of 2006 (as amended) (PMLA) which obligates persons and institutions to combat and prevent money laundering; as well as the Convention on the Suppression of Terrorist Financing Act No 25 of 2005 (as amended) (CSTFA) which imposes a duty on persons and Institutions to combat and prevent the offence of financing of a terrorist act, a terrorist or terrorists or a terrorist organization.

Therefore, the SEC has formulated the attached “Guidelines on Anti-Money Laundering, Countering the Financing of Terrorism and Countering Proliferation Financing for the Securities Market” to provide enhanced assistance, guidance and support to all its regulatees in order to supplement as well as ensure that all Market Institutions and Market Intermediaries including Depository Participants and Trustees of Collective Investment Schemes comply with the applicable Laws and the Rules, Directions, Regulations, Guidelines and Circulars issued by the Financial Intelligence Unit (FIU) of the Central Bank of Sri Lanka relating to Anti-Money Laundering, Countering the Financing of Terrorism and Countering Proliferation Financing.

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28 වන 29 මාල, ලෙවල් 28, 29, ඊස්ට් ටවර් | 28 மற்றும் 29 ஆம் மாடி, கிழக்கு கோபுரம் | Level 28 & 29, East Tower වර්ල්ඩ් ට්‍රේඩ් සෙන්ටර් | வேர்ல்ட் டிரேட் சென்டர் | World Trade Centre එචලන් චතුරශ්‍රය, කොළඹ 01. | எசலன் சதுக்கம், கொழும்பு 01. | Echelon Square, Colombo 01, Sri Lanka.

දුරකථන | தொலைபேசி | Telephone: +94 11 2143843 ෆැක්ස් | தொலைநகல் | Fax: +94 11 2439149 වෙබ් අඩවිය | இணையம் | Website: www.sec.gov.lk | www.cmet.sec.gov.lk | www.cmic.sec.gov.lk

A Member of IOSCO International Organization of Securities Commissions

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SEC

SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA

Continuation Sheet

Accordingly, all Market Institutions and Market Intermediaries are hereby required to ensure adherence to the captioned Guidelines on Anti-Money Laundering, Countering the Financing of Terrorism and Countering Proliferation Financing for the Securities Market (attached hereto) when complying with the applicable Laws, Rules, Directions, Regulations, Guidelines and Circulars issued by the Financial Intelligence Unit of Sri Lanka in relation to the securities market.

Yours faithfully,

(Signature)

Tushara Jayaratne OFFICER-IN-CHARGE SP/SP