Latest 2017 data on ‘suspicious’ financial transactions next month

The 2017 study on Suspicious Transaction Reports ( STRs) – particularly money l aundering attempts -, probed by the Financial Investigation Unit ( FIU) of the Central Bank ( CB) will be released next month, officials say.

They said that FIU suspended funds amounting to Rs. 146 million in 2016, but declined to comment on how much it was for 2017.

Since the end of the internal conflict of the country in 2009, STRs on terrorist financing have not been significant, while STRs relating to Money Laundering ( ML) have showed a significant increase specially relating to drug dealing, frauds, cheating, etc. Last year too, the number of STRs relating to ML was the major component of STRs received, they said.

During the year 2016, the FIU referred 94 STRs to relevant authorities such as the Bank Supervision Department (BSD), Department of Supervision of Non- Bank Financial Institutions ( DSNBFIs), Exchange Control Department ( ECD), NGO Secretariat, Insurance Board of Sri Lanka ( IBSL), and Securities and Exchange Commission of Sri Lanka ( SEC) for further investigations. Majority of the STRs referred to the ECD were on the suspicion of the violation of exchange control regulations. Additionally, 22 STRs were reported to the Inland Revenue Department on the suspicion of tax evasion.

Most STRs referred to law enforcement authorities ( LEAs) were on frauds and drug trafficking, with STRs relating to suspected scams also referred to LEAs for the investigations; they said but didn't comment on how many are being wrapped up.

In 2016, the total number of ML convictions in Sri Lanka was three, including the country's first ML conviction for drug trafficking.

In 2016, Rs. 29 million worth fraud saw the FIU imposing 20 years of imprisonment on this case and thrice the value of this amount as a fine and all properties of the fraudsters confiscated. The report did contain the names of the guilty.

Earlier this month the FIU in a public notice said that designated non- finance businesses (DNFBs) are now obligated to implement proper policies and procedures to stop money laundering and terrorist financing attempts using these businesses and professions under the customers due diligence rules. The notice referred to stringent Anti-Money Laundering / Combating Financing of Terrorism ( AML/ CFT) criteria in five sectors which also included professionals and accountants.