May 23, 2007 (LBO) – Sri Lanka’s Central Bank says it has strengthened action against pyramid schemes and not halted or scaled down investigations in the recent past. “The Central Bank wishes to inform the public that it has in fact, contrary to such reports, strengthened its action against pyramid schemes,” the Central Bank said in a statement.
The Central Bank was responding to media statements following the arrest of QI group or Goldquest kingpins in Indonesia on warrant issued on a fraud complaint in the Philippines.
Last year the Central Bank dissolved its special investigation unit that caused the arrest of several Questnet upliners in rural Sri Lanka, amidst much controversy and media reports linking Governor Nivard Cabraal to Goldquest.
But the central bank says the investigation into pyramid schemes and other unauthorized finance businesses such as unauthorized deposit-taking businesses are handled by the relevant departments in the Central Bank.
“These activities require legal backing and regulatory provisions under different statutes such as exchange control, payments and settlements, anti-money laundering and supervision of banks and no