Organisations attracted Rs.4 b citing tsunami relief - CB Governor

Anjana Samarasinghe

COLOMBO: Some organisations have attracted nearly Rs. 4 billion citing tsunami relief programmes after the 2004 tsunami, Governor of the Central Bank (CB) Ajith Nivard Cabraal said.

Addressing the inaugural session of the capacity enhancement workshop on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT), Cabraal said there is no record of utilising these funds for tsunami humanitarian projects.

"We will take necessary action on these organisations. Many terrorist organisations use humanitarian projects to raise funds for their terrorist activities. Financial systems need to be protected from financing of terrorism and money laundering," he said.

"Money laundering and financing of terrorism was facilitated due to the liberalisation and the advancement of technology. It is vital to be vigilant to safeguard these financial systems from illegal activities," he said.

"Sri Lanka is fully committed to combat these activities and also introduced three new laws to strengthen the AML/CFT regime. The banking system has been used for money laundering and financing for terrorists. Today, banks are being asked to report immediately about suspicious transactions they observe," he said.

"The CB has introduced a "know your customers" programme for banks in combating these activities and also expects to organise public awareness programs too."

Recently, the LTTE was able to absorb 100 million pounds through credit cards used at filling stations in England. Now investigations are being carried out on 200 filling stations in England. Though terrorists exist in one country their activities impact on every economy in the world, he said.

World Bank Country Director Naoko Ishii said that AML/CFT regime is a key attribute of good governance.

Effectiveness of the AML/CFT depends on political support, commitment, resources and human skills.

"Excellent skills are required in monitoring, detecting to implement the AML/CFT. Providing training in enhancing these skills is difficult. This capacity building program will help in effective implementation of AML/CFT regime," she said.

The workshop was organized by the Central Bank, World Bank together with the Asia/Pacific group on Money Laundering.

Representatives from other countries also participated in the workshop. The workshop will conclude on May 11.