Dirty Finance

Feb 02, 2008 (LBO) – Sri Lanka’s Financial Intelligence Unit (FIU) has tied up with Malaysia’s central bank to combat cross-border money laundering and terrorist finance, the Central Bank said. “Sri Lankan authorities should ensure that the FIU should be given operational independence to ensure freedom from undue influence or interference,” the IMF said. The FIU which is operated by the central bank here has signed an agreement with Bank Negara Malaysia to share information.

“Sharing vital information facilitates the investigation and prosecution of persons suspected of money laundering and terrorist financing activities..,” the Central Bank said in a statement.

“Since money laundering is often a cross-border activity, there is a need for FIUs to join forces with other intelligence units and co-operate with each other to exchange information among regulatory institutions.”

Central Bank said the FIU will seek similar deals with anti-money laundering units in other countries.

FIUs have been set up in many countries to collect, disseminate information and combat money laundering and terrorist financing through financial systems, the statement said.

Sri Lanka’s FIU was set