Criminal Risk

Jan 19, 2007 (LBO) – The legality of Sri Lanka’s casinos is uncertain and the lack of supervision could opened them to be controlled by criminals, the International Monetary Fund (IMF) has said. “Illegal profits are co-mingled with legitimate income in the placement and layering stages of money laundering.” The lack of regulation also made it difficult to implement anti-money laundering measures on casinos the international financial watchdog said.

“The legal status of casinos is not clear in Sri Lanka,” it said in a new report on the island’s financial regulations mechanisms to fight money laundering and terrorist financing.

On the one hand, casinos are prohibited under the Gaming Ordinance. On the other hand, under the Betting and Gaming Levy Act, a levy is payable to the Ministry of Inland Revenue by a person carrying on business of gaming.

” . . . large levies have in fact been paid by the casinos currently operating in Sri Lanka,” the IMF said.

Aside from collecting the levy, there is no actual supervision of casinos or ˜fit and proper’ checks of owners, the report said.

“This situation facilitates the ownership or control of casinos by elements of organized c