CBSL focusing on exchange control aspects of Panama Papers dealings

By Hiran H.Senewiratne-June 8, 2016, 7:04 pm 

While releasing the Sri Lankan names the International Consortium of Investigative Journalists (ICIJ) had revealed in relation to the Panama Papers scandal, "the Central Bank handles all the exchange control aspects with regard to the deals. These, we are now in the process of investigating, Central Bank Governor Arjuna Mahendran told The Island Financial Review yesterday.

The names of "three offshore entities, 65 officers, seven intermediaries’ and 53 addresses related to Sri Lanka were revealed by the Panama Papers database which came online recently. These are now being investigated by the government.

Mahendran said the CBSL has already sent letters calling for explanation to the Lankan parties suspected of violating exchange control regulations, to enable them to respond in two months' time. "It takes time to take action since we are following the due process of law if anybody is found guilty, Governor Mahendran said.

"There are legitimate uses for offshore companies and trusts. We do not intend to suggest or imply that any persons, companies or other entities included in the ICIJ Offshore Leaks Database have broken the law or acted improperly, he said.

"Many people and entities have the same or similar names. We have already sent for questionable persons to respond to our queries at least within two months and confirm the identities of any individuals or entities located in the database, based on addresses or other identifiable information, he explained.

Mahendran also said they had requested original documents from their Panamanian counterparts for further investigations. As such, the CBSL was awaiting the original documents from the National Bank of Panama or ‘Banco Nacional de Panamá’. However, Panama does not have an ‘official’ Central Bank.

Mahendran stressed that the CBSL would be contacting relevant authorities, such as, the Department of Inland Revenue, to ascertain whether any Sri Lankan individuals or entities have actually figured in the scandals, under principal laws, such as, the Inland Revenue Act and the Exchange Control Act, when conducting investigations.

Earlier, Sri Lankan government officials stated that steps would be taken against those who have violated any laws, after authenticating the names revealed. "The Finance Ministry is coordinating with all relevant entities and institutions to investigate persons involved in questionable dealings, the Governor added.