WikiLeaks: Money Laundering – Sri Lanka Has No Laws To Regulate Casino Operations

Robert O. Blake-October 23, 2013

“Many areas of concern exist with respect to Sri Lanka’s current anti-money laundering efforts. The Central Bank continues to allow the operation of bearer certificates of deposits. In July 2003, in order to limit money laundering through bearer certificates, the Central Bank required banks to maintain a record of purchasers of these certificates. Casinos, jewelry shops and dealers in gems are also areas of concern, there are no laws to regulate their operations. A key vulnerability in the Sri Lankan financial system is the existence of SIERA accounts which allow foreign investors to participate directly in the Sri Lankan Stock Exchange. These accounts have historically allowed for undisclosed principals and beneficial owners. The Central Bank and Securities Commission are currently drafting rules which would require better disclosure and CDD procedures prior to establishment of these accounts.” the US Embassy Colombo informed Washington.

Bar Committee Expresses Concern Over Bribery Commission’s Failure On Mervin And Abeygunawardena Investigations

October 23, 2013

‘The standing committee of the Bar Association of Sri Lanka on Rule of Law’ expresses its’ deep concern at the failure of the Commission on Bribery or Corruption to make the public aware of the outcome of the investigations commenced into unaccountable assets of two government party parliamentarians Mervin Silva and Rohitha Abeygunawardena.

Mervin

These two investigations were given wide publicity and the silence since then has caused widespread speculation as to what has happened to these investigations.  ”This silence will cause the public to lose faith in the main institution vested with the statutory power to investigate allegations of bribery or corruption.” says the standing committee of the Bar Association of Sri Lanka on Rule of Law

Issuing a statement it says; “Further the inaction over the several allegations of corruption in government enterprises and public officers uncovered by the Parliamentary Committee on Public Enterprises (COPE) is causing doubts in the ability and the will on the part of the commission to act speedily and independently on allegations of bribery or corruption.

“Though we do not, unfortunately, have a statute on ‘Right to Information’, the public is entitled to have information on a matter that affects public life and good governance.

We stress the necessity to demonstrate transparency on these matters so as to maintain public faith in the fight against bribery and corruption.”