The Sri Lanka Civil Society FATF Network has released a series of briefing notes examining the relationship between Financial Action Task Force (FATF) standards and the regulation of civil society organisations (CSOs) in Sri Lanka.
The publication highlights the role of FATF as the global body responsible for setting standards to combat money laundering and terrorist financing, while emphasizing that measures affecting non-profit organisations should be targeted, proportionate, and risk-based. According to the briefing notes, many civil society organisations in Sri Lanka face increasing challenges in accessing financial services, receiving foreign funding, and carrying out their legitimate activities.
The report raises concerns regarding the implementation of anti-money laundering and counter-terrorism financing measures, arguing that certain administrative practices and regulatory requirements have created barriers for civil society organisations, particularly those engaged in human rights, humanitarian assistance, and community development work. These challenges have reportedly resulted in delays in project implementation, increased administrative burdens, and difficulties in maintaining essential services for vulnerable communities.
The briefing notes also discuss Sri Lankaās ongoing FATF mutual evaluation process and the importance of ensuring that measures adopted to address financial crime do not unnecessarily restrict civic space or undermine freedom of association. Additionally, the report examines several proposed legislative reforms and their potential implications for civil society, due process, and financial inclusion.
The Sri Lanka Civil Society FATF Network calls for meaningful dialogue between government institutions, financial regulators, banks, and civil society organisations to ensure that compliance with international standards is achieved while safeguarding democratic freedoms and human rights.
For a comprehensive understanding of the issues discussed, including FATF standards, their implementation in Sri Lanka, the impact on civil society organisations, and proposed legislative reforms, readers are encouraged to view the full report attached below.