CB signs MoU to fight money laundering

The Financial Intelligence Unit (FIU) has entered into a Memorandum of Understanding (MOU) with the Department of Inland Revenue to exchange information to facilitate investigations and prosecutions on money laundering and terrorist financing, the Central Bank said in a statement yesterday.  

The agreement was signed under the terms of the provisions of the Financial Transactions Reporting Act, No. 6 of 2006 (FTRA), on 19 October 2016 at the Central Bank of Sri Lanka.

Inland Revenue Department Commissioner General Kalyani Dahanayake and FIU Director H. Amarathunga signed the MoU on behalf of the respective institutions in the presence of Central Bank Governor Dr. Indrajit Coomaraswamy, who is also the Chairman of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) National Coordinating Committee.

“Money laundering and terrorist financing are internationally and domestically connected financial crimes which could threaten the stability of the global economic and financial system. With the increase of tax-related crimes all over the world, the Financial Action Task Force (FATF), the international policy setter on AML/CFT, recommends countries to incorporate tax crimes as a predicate offence to money laundering,” the statement said. 

In this background, domestic coordination and cooperation between the FIU and the Department of Inland Revenue would help strengthen the existing AML mechanism in Sri Lanka in relation to tax evasion.

The FIU has already entered into similar MoUs with Sri Lanka Customs and the Department of Immigration and Emigration while arrangements are being made to sign MoUs with other relevant domestic government agencies for the above purpose over the next few months.