The Governor of the Central Bank Ajith Nivard Cabraal has stated that under the Money Laundering Act if a person credits money to another account without any reason, the Central Bank will investigate the transaction.
He also added that the Central Bank will take steps to freeze such suspicious accounts.
“Remittances are one of the top foreign exchange earning sectors in Sri Lanka, which used to be about US$ 7 billion a year,” he said addressing a media briefing held at Central Bank.
However, Cabraal said that during the past month alone, there was a reduction of about US$300 million in remittances as money has been exchanged through various other means.
“We feel that the exchange rate which is around Rs. 200 is paid at around Rs. 240 in some places. Rs. 72 billion is required to distribute US$300 million. That is around Rs. 7200 crores to be distributed in the country. If so, where is all this money coming from? Most can be from drug trafficking,” he added.
Cabraal went on to say that under the Money Laundering Act, investigations will be conducted if any person is sending money to another person without any reason.
He also warned that the Central Bank has the authority to suspend such accounts. (NewsWire)