SL on track to have ‘High Risk Group’ rating improved: Treasury Secy.
The new stance of the FATF is encouraging and we can expect that Sri Lanka would be removed from the risk group on financial crimes before the end of the year
Now that the Financial Action Task Force (FATF),T HE global policy setter on Anti-money Laundering and Countering the Financing of Terrorism (AML /CFT) has sent positive feelers on Sri Lanka, the country stands a chance to remove it from the list of ‘High Risk Group’ on crime, Treasury Secretary Dr. R.H.S. Samaratunga said yesterday.
The FATF in late January listed Sri Lanka among eleven high risk countries that has failed to take sufficient measures to combat money laundering, terrorism financing and other threats to the international financial market. However, the FATF, IN a mutual evaluation last week, has said that Sri Lanka has completed its action plan and this warrants an on-site assessment to verify that the implementation of Sri Lanka’s AML/CFT reforms has begun and is being sustained.
The necessary political commitment remains in place to sustain implementation in the future.the decision was taken at the FATF Plenary Sessions held during from February 20-22,2019 in Paris.
In October 2016,the FATF announced that Sri Lanka will be subjected to a review of the International Cooperation Review Group (ICRG) of FATF to assess the progress of AML/CFT effectiveness in the country.
“The new stance of the FATF is encouraging and we can expect that Sri Lanka would be removed from the risk group on financial crimes before the end of the year,” dr. Samaratunga said.
The good name earned by Sri Lanka on this issue is extremely important when Sri Lanka deals with global financial agencies and lenders. It will also reflect positively on the country as any investor would think twice before investing in a country tarnished with allegations of financial crimes,” Dr.Samaratunga told Daily Mirror.
The countries that had been listed with Sri Lanka for various financial crimes are Bosnia and Herzegovina, north Korea, Ethiopia, Iran, Iraq, Syria, Trinidad and Tobago, tunisia, Vanuatu and Yemen.
Meanwhile, the Central Bank in a communiqué said since the listing in November 2017, the Financial Intelligence Unit together with other stakeholders have taken a series of effective and tangible steps to implement the FATF Action Plan. Sri Lanka reported the progress achieved in the implementation of the Action Plan regularly to the FATF.AS per the decision taken at the FTAF Plenary Sessions, a team of evaluators will be visiting Sri Lanka in May and will meet all relevant stakeholders, including the private sector and the highest political authorities to verify the implementation of the FATF Action Plan and to ascertain Sri Lanka’s political commitment towards implementation of AML/CFT.
The on-site team will make their recommendations at the FATF Plenary Sessions scheduled to be held in June 2019 which could result in Sri Lanka exiting the “Grey List” in the June 2019,Dr. Samaratunga said.