Central Bank Response To Muttukumaru’s Allegations Against CBSL Governor Dr. Indrajit Coomaraswamy
Dr. Indrajit Coomaraswamy – Governor CBSL
This refers to the column appearing in the Opinion Section of Colombo Telegraph on 10.01.2019 under the caption “Governor Indrajit and EU ‘Blacklist’ On Money Laundering” by Mr. Amrit Muttukumaru, which carries erroneous allegations against Dr. Indrajit Coomaraswamy, the Governor and the Central Bank of Sri Lanka (CBSL). Therefore, CBSL wishes to provide the following information to readers of Colombo Telegraph to be aware of the action taken by the CBSL so far since July 2016, with respect to issues raised in the above article under reference.
a) In November 2017, Sri Lanka was listed as a jurisdiction with strategic Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) deficiencies in the Financial Action Task Force’s (FATF) Compliance Document (more commonly identified as “the Grey List”). Upon listing, a time bound action plan to address the strategic deficiencies identified in relation to AML/CFT was provided to Sri Lanka.
Since the listing, Sri Lanka has made a high-level political commitment and taken effective and tangible steps to implement the FATF Action Plan including passing Trust Ordinance (Amendment) Act No 6 of 2018, Mutual Assistance in Criminal Matters (Amendment) Act No 24 of 2018, Issue of Regulation implementing United Nations Security Council on DPRK and Iran, issuance of various directives and guidelines on the implementation of Regulation on DPRK and Iran, Issue of Customer Due Diligence Rule for Designated Non- Finance Businesses, implement risk-based supervision, enforcement actions and outreach for financial institutions and designated non-finance businesses.
The Governor, as the Chairman of the National Coordinating Committee established to coordinate AML/CFT matters, is committed to support global efforts in combating money laundering and terrorist financing and increasing Sri Lanka’s compliance level with the FATF Recommendations.
b) Regarding EAP group of companies and whether CBSL has done the appropriate due diligence; CBSL wishes to inform that all relevant parties were instructed to carry out the transaction in compliance with applicable laws, rules and regulations. Further, the banks concerned have proved confirmation as to the conformity with applicable laws, when funds were received to the country under this transaction.
c) The Central Bank of Sri Lanka (CBSL) has taken several regulatory actions against Perpetual Treasuries Limited, including the suspension of business and activities with effect from 06.07.2017, based on the findings of the regulatory investigations carried out by the CBSL and the recommendations made by the Presidential Commission of Inquiry (PCoI). Further, criminal proceedings against Perpetual Treasuries Limited and several individuals connected to the irregularities have also been initiated based on a complaint made to the Criminal Investigations Department by the CBSL.
Steps have also been initiated by the CBSL, by way of civil recovery action, to recover the unlawful gains made by Perpetual Treasuries Limited at the expense of the Employees’ Provident Fund.
d) A press notice is to be issued in a few days on the action taken by the Monetary Board of the Central Bank of Sri Lanka in carrying out forensic audits to implement recommendations of the Report of the Presidential Commission of Inquiry into Treasury bond issuances and this notice will also be available on the CBSL website.