Sri Lanka to share info on money laundering with China, Bhutan

Aug 08, 2017 (LBO) – Sri Lanka will share financial information with China and Bhutan facilitating investigation and prosecution of persons suspected of being involved in money laundering and terrorist financing under a new arrangement.

Sri Lanka’s Central Bank signed two MOUs with the China AML Monitoring and Analysis Centre and Financial Intelligence Unit of Bhutan at the annual meeting of the Asia/Pacific Group on Money Laundering (APG), held in Colombo recently.

These agreements help countries to co-operate with each other through the exchange of information, in order to combat such activities that are more often internationally connected and emanating from global criminal activities.

Greater coordination among financial intelligence authorities is facilitated through these agreements which provide a legal framework adaptable to each country.

China became a member of the APG in 2001 and joined the Financial Action Task Force (FATF) as a fully fledged member in 2007 while Bhutan obtained its membership in 2011.

With the signing of these two MOUs, the total number of MOUs entered into by the Financial Intelligence Unit of Sri Lanka’s Central Bank has increased to 35.

This practice has been introduced by the Egmont Group, the association of Financial Intelligence Units worldwide.

Money Laundering refers to the process by which proceeds from a criminal activity are disguised to conceal their illicit origin.

Money launderers often send their illicit funds through legal channels in order to conceal their criminal origin and convert them into legitimate assets.

On the other hand, terrorist financing is the financial support in any form of terrorism or of those who encourage, plan or engage in terrorism.