The police teams that investigated Undiyal and Hawala money transactions have been able to reveal information about over 80 people who provided facilities to exchange foreign currency through these informal methods.
It was reported that most of the people involved in these illegal transactions are Muslim businessmen.
Police internal sources said that they are investigating a poultry businessman who exchanges about 50,000 US Dollars daily.
‘Sri Lanka Mirror’ learns that the suspect is misusing a license issued by the National Gem and Jewellery Authority of Sri Lanka, to exchange currencies.
It was also revealed that such persons exchange foreign currency through informal methods such as Undiyal and Hawala using cryptocurrency.
Meanwhile, ‘Sri Lanka Mirror’ also learnt that this aforementioned businessman had been living in Kuwait but had returned to Sri Lanka while a financial investigation was being conducted against him in that country.
In addition, police are also looking for information about five people in the areas of Kelaniya, Wattala, Dematagoda and Aluthkade where money is frequently exchanged.
USD 10 million traded daily
According to the Financial Intelligence Unit (FIU) operating under the Ministry of Finance, more than USD 10 million are being received illegally on a daily basis through Hawala and Undiyal systems.
Information has also revealed that these illegal money transactions originate from Italy, UAE, England, Canada, Australia as well as many other European countries.
How does it work?
Undiyal and Hawala are methods of transferring money between two or more countries without the intervention of a bank or other formal financial institution. These methods operate through a network of people spread across many countries.
As an example, let’s take four persons: A (sender of money), B (Undiyal or Hawala broker in the country where A lives), C (Undiyal or Hawala broker in the country where the recipient lives), and D (the recipient of money).
Accordingly, A and B live in one country while C and D live in another.
A gives B the amount to be sent to D. Later, B gives C the amount given by A. C gives the amount to D in the currency of the respective country.
There are also instances where B gives the relevant amount to D from the deposits in his bank account maintained in the country where D lives, without the intervention of a person like C.
These transactions are based on a secret passcode or a mere description without any document or other form of recording.
In these transactions, there is no physical exchange of money across borders, and there is no intervention of a bank or other authorized money exchange agency.
A special police unit
According to the Central Bank of Sri Lanka (CBSL), the significant reduction in the amount of foreign exchange received by the country is the main reason for the worsening economic crisis.
Transferring money outside the banking system using methods such as Undiyal and Hawala has significantly affected the amount of foreign exchange.
Taking these facts into consideration and at the request of the Governor of the Central Bank, the Inspector General of Police recently took steps to appoint a special police unit under the Illegal Assets Investigation Division to conduct investigations into incidents of money exchange through illegal methods.
The Colombo Chief Magistrate’s Court today (May 16) rejected a request by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) to cancel the bail granted to Badulla District MP Chamara Sampath Dassanayake and remand him again over alleged financial misconduct during his tenure as a member of the Uva Provincial Council in 2016.
Chief Magistrate Thanuja Lakmali delivered the decision after considering arguments presented by both parties.
In a motion filed before the court, the CIABOC alleged that the MP had interfered with ongoing investigations through his wife by prompting former President Ranil Wickremesinghe to hold a press conference.
During this briefing, Wickremesinghe reportedly made inaccurate statements related to the case, portraying the MP’s actions as permissible. However, President’s Counsel Kalinga Indatissa, representing Dassanayake, denied any interference or misconduct, arguing there was no evidence of witness tampering. The Commission also acknowledged that the former President is not listed as a witness in the case.
MP Dassanayake was initially granted bail on April 08 over the same incident.
The Department of Motor Traffic has notified owners of newly registered vehicles that the issuance of number plates has been temporarily suspended, effective April 28, due to a supply shortage.
In an official communication, the department acknowledged that although number plates are a mandatory component of vehicle registration, ongoing supply issues have made it impossible to fulfill this requirement at present.
As a result, both number plates and corresponding stickers for newly registered vehicles will not be issued until further notice.
The Department has assured vehicle owners that distribution will resume as soon as the supply is restored.
(dailynews.lk)
(Except for the headline, this story, originally published by dailynews.lk has not been edited by SLM staff)
The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) today (May 16) informed the Colombo Chief Magistrate’s Court that a recent statement by former President Ranil Wickremesinghe regarding a treasury circular was factually inaccurate.
The Magistrate was also informed that the statement may have interfered with an ongoing bribery investigation involving Badulla District MP Chamara Sampath Dassanayake.
Wickremesinghe, speaking at a special media briefing, had stated that a circular issued in 2015 – during his tenure as Prime Minister – allowed provincial councils to withdraw fixed deposit funds prior to maturity.
However, the CIABOC has clarified that the circular in question was actually issued on November 22, 2016, whereas Dassanayake had withdrawn the funds much earlier, on February 29, 2016.
The Commission also disclosed that Mr. Wickremesinghe’s statement was made at the request of Dassanayake’s wife and that the accuracy of the circular’s date had not been verified before the public statement.
Dassanayake, who appeared in court today, is accused of causing a financial loss of over Rs. 17.6 million to the government by prematurely withdrawing fixed deposit funds belonging to the Uva Provincial Council during his time as Chief Minister.