Lanka must be more conscious of money laundering - Colin Day

Despite the standards being set; Sri Lanka still has a great deal to overcome with respect to reducing the rate of money laundering.

Senior Vice President of SunGard’s Financial Crime Solutions Division, Colin Day, said that the issue of money laundering is becoming increasingly problematic due to the global financial crisis and the resulting international consensus on more stringent monitoring and surveillance.

Money laundering in Sri Lanka is a prominent issue, especially with respect to activities of groups such as the Tamil Tigers. The group has drawn widespread criticism for its terrorist activities in the region and its use of credit card fraud and money laundering as a means of funding its attacks.

In July 2005 the Sri Lanka Parliament enacted the Convention on the Suppression of Terrorist Financing Act, which was followed by the signing and ratification of the Prevention of Money Laundering Act in 2006.

Both measures are aimed to limit the proliferation of terrorist funding and bring Sri Lanka into alignment with international standards on money laundering.

The International Monetary Fund has estimated that the aggregate amounts of funds laundered in the world could range between 2 to 5 per cent of the global GDP. Given the estimated global GDP of approximately USD 48 trillion, this could range between USD 1 - 2.4 trillion in laundered funds.

SunGard has been offering solutions and counsel on how banks and financial institutions can combat money laundering.

Due to the international standard for anti-money laundering, many banks are now looking for affordable and automated alternatives to their existing approaches, which will hopefully negate the problem of human error and time consumption.

Colin Day, will be visiting Sri Lanka next week to discuss remedies with Sri Lankan officials end of the month.

SS