Customs, Central Bank join to curb money laundering

Central Bank’s Financial Intelligence Unit signed a Memorandum of Understanding with the Sri Lanka Customs Department. This aims to share information to facilitate investigation and prosecution of persons suspected of money laundering and terrorist financing.

The signing ceremony was held at Central Bank last Friday.

Deputy Governor P. D. J. Fernando chaired the signing ceremony while Customs Director General Sarath Jayatilake and FIU Director D. M. Rupasinghe signed the MOU on behalf of two institutions.

FIUs have been established in more than 130 countries as dedicated institutions to facilitate fight against money laundering, terrorist financing and other unlawful activities.

In Sri Lanka, the FIU was established in 2006 under the Financial Transactions Reporting Act (FTRA) No. 6 of 2006 and now operates in the Central Bank.

Money launderers and terrorist financiers are most often internationally connected and operate across borders. The Financial Intelligence Unit and other authorities such as Sri Lanka Customs also need to be domestically and internationally organized to fight against these activities. The MOU will facilitate greater co-operation and co-ordination between the two institutions in the exchange of information relating to the cross border currency transactions/movements.

The MOU entered with Sri Lanka Customs is the first of such MOU to be entered into with domestic agencies. Arrangements are currently being made to sign similar MOUs with other domestic agencies to facilitate the exchange of information thereby mutually benefiting the Sri Lanka’s effort in combating Money Laundering and Terrorist Financing.