SL committed to fight against money laundering, terrorist financing

From left: EAG Executive Secretary Vladimir Nechaev, Australia Co-Chair Leanne Close, Financial Action Task Force Executive Secretary David Lewis, Finance and Mass Media Minister Mangala Samaraweera, Central Bank Governor Indrajit Coomaraswamy, Sri Lanka Co-Chair Dr. H. Amarathunga and Asia Pacific Group on Money Laundering Executive Secretary Dr. Gordon Hook – Pix by Ruwan Walpola

By Charumini de Silva

The Government yesterday pledged its commitment to the global cause of fighting money laundering and terrorist financing, while insisting Sri Lanka would effectively implement recommendations highlighted in the Mutual Evaluation Review (MER) of 2015.

Delivering the keynote address at the opening ceremony of the 20th Annual Meeting of the Asia Pacific Group (APG) on Money Laundering 2017, Finance and Mass Media Minister Mangala Samaraweera said Sri Lanka was completely committed to the tasks at hand, with the Government being fully supportive of the efforts to ensure that the recommendations of the MER were realised via a concerted and well-coordinated effort. 

He acknowledged that the participation and interest of over 400 delegates was indeed good news, as Sri Lanka had come through a very tough MER process carried out in 2015 with the APG leadership. 

“I was informed that we are not yet completely out of the woods, and that several areas still remain with regard to effective implementation of tasks and issues highlighted in the MER of 2015.”

Samaraweera said a national policy was formulated and passed early last year by the Cabinet to oversee that the progressed achieved in many areas, in a timely and effective manner with the Financial Intelligence Unit (FIU) being placed as the national Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) coordinator.

It was pointed that apart from the local commitment Sri Lanka need assistance from the international community as well.

“We have come out of a fairly challenging period of time, where corruption was rampant and we have taken measures to rally against it. We should be able to do more, achieve more and travel our journey towards eradicating all sorts of crime with the support of the international community,” he added.

Furthermore he said Sri Lanka’s achievements had been strengthened by a committed President, Prime Minister and a Government along with a dedicated set of officials in the public sector including dutiful investigators who firmly believe due process should follow principles of equity and justice should be ensured. 

In addition, he asserted prosperity, harmony, and mutual respect and assistance towards other countries endeavours should be firmly recognised and safeguarded and assisted.

Noting that over 40 member countries were attending the five-day conference, he said officials from those countries numbering more than 400 were now at this venue and it was the largest member participation for an APG Plenary going back to several years.

Samaraweera asserted that this level of interest, as demonstrated in the numbers participating in this event, could be attributed to the prestige of the APG and the trust placed in its plenary as well as the Financial Action Task Force (FATF) process, governing policies on AML and CFT.

Further, he stressed it was ample evidence that Sri Lanka was a prime destination to visit, being a country that had shed its war-torn, conflict-ridden image and come up in global rankings as a peaceful and harmonious country as well as an efficient and dedicated member of the international community, committed in the global fight against money laundering and terrorism financing, corruption and drug trafficking.

“It is fair for me to say that we as members of a Government expect good assessment of our country’s activity, helping us to move up in the world, pledging our commitment to the cause of fight against money laundering and terrorist financing,” he stated.

FATF Executive Secretary David Lewis commended Sri Lanka for quickly addressing a large number of recommendations, adding that it demonstrated strong political commitment as well.

He pointed that although there were robust local standards to protect the financial systems, it was vital that the members of the APG adopted full-bodied regimes to counterattack the threat to money laundering and terrorist financing.

“We are now in the process of assessing how effective the countries are in dealing these threats. It is not enough to pass laws without enough capacity to effectively implement them,” he added.

Lewis said the FATF has reviewed 80 countries and probably identified 61 of them, of which 51 countries still needed necessary reforms to address issues and concerns. 

Highlighting the importance of having a robust financial system, Lewis stated it ensures countries with reputation to do good business.       

Co-Chair and Director FIU of the Central Bank of Sri Lanka Dr. H. Amaratunga said money laundering and terrorism financing could only be prevented through a collective effort of all local and international stakeholders and partners.

According to him Sri Lanka has signed 35 Memorandum of Understandings (MOUs) with foreign FIUs. 

He said the FIU in Sri Lanka which was established in 2007 had evolved with the challenges and necessitates of the time. The FIU uses information on any suspicious transaction in relation to money laundering and credit financing from all the finance companies insurance companies and stock brokers, where recently this requirement was imposed in non-financial businesses and professionals as well. 

Dr. Amaratunga said the conference was a beginning of a new chapter in Sri Lanka’s effort towards AML and CFT. 

The conference will include sessions focusing on issues and concerns that need to be addressed which will help all APG members to understand the threats and vulnerabilities in the areas of money laundering and terrorist financing.

Pix by Ruwan Walpola

Govt. committed to pure and transparent financial management: President 

President Maithripala Sirisena says the Government is committed to strengthen the national economy by ensuring the purity and transparency of financial management. 

The President made these remarks addressing the inauguration ceremony of the 20th Annual Meeting of the Asia/Pacific Group on Money Laundering, commenced in Colombo yesterday.

The 2017 APG Annual Meeting and Technical Assistance and Training Forum is being held in Colombo from 17-21 July with the participation of local and foreign delegates from 41 member countries and several international observer organizations.

The President further said that all the countries in the world should be genuinely committed to properly implement the national and international commitments, agreements and declarations on Money Laundering to overcome the challenges faced by all the countries. 

The President pointed out that the national economy of each country would be strengthened if money laundering was prevented, adding that it was very important in international financial management. 

The Sri Lankan Government has established strong statutory and legal institutions to deal with misuse of public money and money laundering, the President said, that adding those institutions at present efficiently and effectively fulfill their duties. 

The President also pointed out that huge sums of money were generated by terrorist organisations and illegal drug smugglers through money laundering, and said that as a Government which was strongly against terrorism at national and international level, it was well aware of the importance of preventing money laundering. 

The President also emphasised that the Government would take every possible measure to work in accordance with the covenants and treaties entered internationally.

The Asia/Pacific Group on Money Laundering (APG) is an autonomous and collaborative international organisation founded in 1997 in Bangkok, Thailand consists of 41 members and a number of international and regional observers. APG members and observers are committed to the effective implementation and enforcement of internationally accepted standards against money laundering and financing of terrorism, in particular the Forty Recommendations of the Financial Action Task Force on Money Laundering. 

The Annual Meeting will be especially significant to Sri Lanka, as Sri Lanka becomes the APG Co-chair for the years 2016-2018. 

Governor of the Central Bank of Sri Lanka Dr. Indrajit Coomaraswamy, Attorney General Jayantha Jayasuriya and the representatives of the Asia/Pacific Group including their Executive Secretary Gordon Hook participated in this event.