General Compliance Framework (All Staff)  

1. Introduction to AML/CFT Compliance 

Why AML/CFT Matters to Every Employee 

Key Message  

Every employee, regardless of department, is a frontline defender against financial crime. Your vigilance protects our business, our customers, our country and the world. 

Three Stages of Money Laundering 

1. Placement: Introducing illegal funds into the financial system 
2. Layering: Complex transactions to disguise the origin 
3. Integration: Laundered funds re-enter the economy as “clean” money

Casinos are vulnerable at all three stages, making every department critical.  

2. Sri Lankan Legal Framework  

Key Legislation Overview 

Regulatory Authorities  

3. Key Terminology and Concepts  

Essential AML/CFT Vocabulary 

• KYC (Know Your Customer): Verification process for customer identity
• CDD (Customer Due Diligence): Basic identity verification 
• EDD (Enhanced Due Diligence): Additional checks for high-risk customers
• PEP (Politically Exposed Person): Individuals with prominent public functions 
• STR (Suspicious Transaction Report): Filed when suspicious activity detected 
• CTR (Cash Transaction Report): Filed for cash transactions > LKR 10M 
• Tipping-Off: Illegal disclosure of STR filing 

4. Red Flag Indicators (Common to All Departments)   

Behavioural Red Flags

• Customer appears nervous or avoids eye contact 
• Reluctance to provide identification documents 
• Inconsistent stories about source of funds or wealth 
• Unusual knowledge of reporting thresholds 

Transaction Red Flags 

• Transactions just below LKR 1M or LKR 10M thresholds 
• Rapid increase in transaction patterns without explanation 
• Use of multiple accounts or identities 
• Illogical transactions with no economic purpose 

5. Reporting Obligations and Procedures    

Critical Rules for All Staff 

• Never discuss suspicions with colleagues unnecessarily 
• Never inform customers about STR filings 
• Always document observations accurately 
• Immediately report to your supervisor or Principal Officer 

6. Consequences of Non-Compliance     

Individual Consequences 

• Disciplinary action up to termination 
• Fines up to LKR 1 million 
• Imprisonment up to 5 years for tipping-off