January 22, 2007 (LBO) – Sri Lanka plans probe deeper into the financial activities of non-governmental organizations, by beefing up its financial intelligence unit, Central Bank governor, Nivard Cabraal said Monday. Operating since July last year, the unit was set up to track foreign exchange dealings in excess of 5,000 dollars, to ensure unscrupulous people do not use the island’s financial system to launder money.
The Financial Transactions Reporting Law also aims to deter people from using the financial system to fund terrorist activities, and others from entering the equity markets by using money, suspected to be made out of sophisticated financial scams.
The law also covers illegal activities such as organised crime, illicit arms sales, drug trafficking, human trafficking, prostitution, insider trading, bribery, computer frauds as well as terrorist finance.
Efforts to combat financing of terrorism requires jurisdictions to expand the scope of anti-money laundering framework to include non-profit organizations and in particular, some dubious charities, Cabraal.
Cabraal, was addressing a five-day training session where participants from the Commonwealth Secretariat, the United Nation