Regulatory Alerts2026-03-17 | Finance Business Act Directions No.02 of 2026Assessment of Beneficial Owners of Finance Companies
The Central Bank of Sri Lanka mandates licensed Finance Companies to identify, verify, and maintain accurate registers of their Beneficial Owners, defined as natural persons holding ten percent or more ownership or exercising effective control. Finance Company Boards must implement robust internal policies, conduct enhanced due diligence for complex structures and politically exposed persons, and ensure beneficial owners submit fit-and-proper declarations confirming they are not criminals or their associates. These entities must retain all supporting documentation for at least ten years, submit annual ownership reports to the regulator, and maintain strict confidentiality while ensuring regulatory access.
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