CB should know how to close fraud-loopholes

Alleged frauds by finance companies are reported from far-flung areas such as Tissamaharama in the Deep South whereby almost Rs. 30 million have been denied to depositors. They have lodged complaints with the police but as it seems that appropriate action won’t be taken, they may have to file action in court.

The Central Bank is not only tasked with the duty and responsibility to register finance companies but is also obliged to take appropriate action on all unregistered institutions engaging in illegal financial practices.

It is up to the Central bank to make sure that depositors won’t be swindled by such bogus financial companies. Newspaper advertisements and warnings issued in this regard will not put a stop to happening this in the future.

I would like to suggest a less expensive and more result-oriented method to deal with this problem.

All civic minded citizens must be encouraged to inform the Grama Niladhari s (GN) of their area when such unscrupulous financial institutions are obtaining money from unsuspecting depositors.

Then the GNs can find more information abut them and, if convinced, inform the Police Frauds Investigations Unit about such individuals.

Such vigilance is essential to stop these kinds of frauds recurring.

It is up to the Central bank to make sure that depositors won’t be swindled by such bogus financial companies

Golden Key Depositors

(Colombo)