Central Bank is to take action against 4000 pyramid promoters who had fraudulently helped send nearly US$ 7 million out of the country in the in the first quarter of this year.
"We can impose fines up to three times the value of the foreign exchange transaction involved," Exchange Controller H A G Hettiarachchi told a media conference on Tuesday.
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rnInstructions would also go out to banks to cancel the credit cards of offenders who had violated Section 5 of the Exchange Control Act by selling foreign exchange to third parties. The Department of Exchange Control says these persons have been effectively been conducting an illegal foreign exchange business.
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rnA person who joined a gold coin pyramid told Lanka Business Online that an upline leader based in Galle had charged the participant Rs. 40,000 to send US$ 390 abroad, earning more than Rs. 1000 per transaction in the process.
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rnCentral Bank officials say commercial banks have also decided to take action against bank employees who are promo