Regulatory Alerts2017-03-22 | Banking Act Determination No. 01 of 2017Amendment to Pawning Conditions Issued to Licensed Commercial Banks
The Monetary Board of the Central Bank of Sri Lanka amended the Pawning Conditions for licensed commercial banks by adding three mandatory reporting obligations under Section 83A of the Banking Act. Licensed banks must now submit monthly auction purchase reports for articles valued at Rs. 500,000 or above to the Director of Bank Supervision by the fifteenth day of each following month. Furthermore, institutions are required to report suspected collusion in large gold acquisitions and identify suspicious gold transactions to the Financial Intelligence Unit through designated compliance officers.
2.2. March 2017 ffi MONETARY BOARI) CENTRAL BANK OF SRI LANKA BANKING ACT DETERMINATION No.01 of 2017 AMENDMENT TO PAWNING CONDITIONS ISSUED TO LICENSED COMMERCIAL BANKS Determination made by the Monetary Board of the Central Bank of Sri Lanka under Section 83A of the Banking Act, No' 30 of 1988, as amended. In the exercise of the powers conferred by Section 83A of the Banking Act, No. 30 of 1988 (as amended), the Monetary Board hereby issues the following Conditions amending the Pawning Conditions issued to licensed commercial banks dated 07 September 1998. 2. The following new Conditions shall be included immediately after Condition 15(8) of Pawning Conditions issued to licensed commercial banks dated 07 September 1998. Sale of Pledges 15. (9) A Pawnee shall report details of purchases of articles where total value is Rs.500,000 or above at auctions of pawned articles, each month to the Director of Bank Supervision on or before the 15ft day of the following month in the format set out in Schedule 8 annexed hereto. 15. (10) A Pawnee shall report if there is reason to suspect that there is collusion between two or more parties with a view to buying large quantities of go1d. 15. (11) A Pawnee shall identify and report any purchases of suspicious transactions arising from purchases of gold articles from auctions of pawned articles to the Director Financial Intelligence Unit (FIU) through the Compliance Officer of the bank designated under the Financial Transactions Reporting Act No. 6 of 2006. A suspicious transaction shall ' have the same meaning as in Sections 6 and 7 of the Financial Transactions Reporting Act No. 6 of 2006 and the Circular I3ll2dated 22March20l2 issued by the Director of FIU. ilo*,^,*-r, ' Dr.IndrajitCoomaraswamy Chairman of the Monetary Board and Governor o.f the Central Bank of Sri Lankn
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