Jul 04, 2017

Confidential reports of customer transactions to Central Bank Featured

Financial transactions are on the decline following a Finance Ministry directive to banks and financial institutions to send confidential reports to the financial intelligence unit of the Central Bank with regard to suspicious transactions of customers, sources say.

The reports are required from registered financial institutions, banks, stockbrokers, insurance companies and money exchangers.

Ex-finance minister Ravi Karunanayake made the directive through gazette extraordinary issued on 21 April 2017 under financial transaction reports act no. 6 of 2006.

It advises the relevant institutions not to inform the customers about these confidential reports, sent together with supportive document copies, adding the CB has a safe electronic reporting system to keep the data supplied.

Various brokers being employed by customers, opening accounts to the names of family members or named representatives, maintaining accounts for large sums of money for a long time, maintaining accounts without any economical or commercial reasons, unusual transactions, sudden changes in transaction behaviour etc. are deemed suspicious.

Selling or buying stocks during unfavourable economic situations, using account money to buy a controlling stake of a business with a high turnover, showing unusual ownership in internal administration, naming a bank account to the name of a third party as the payee are also included.

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