Ravi K’s blanket amnesty against global financial rules: Nahil

By Charumini de Silva

Despite the invitation extended by Finance Minister Ravi Karunanayake requesting citizens holding Swiss bank accounts to redeposit the cash in the country’s banking system with a promise that no questions will be asked, industry experts say that it is against international regulations.

“If we are to follow Singapore and the UK standards, all significant inward remittances need a declaration of source of funds,” East West Holdings Group Chairman Nahil Wijesuriya told the Daily FT.

He went on to say that it was mandatory for every bank to know the source of funds according to international monetary regulations.

“There is no way that a politician can say that no questions will be asked. Banks receiving these considerable amounts of funds are bound to know their customers and adhere to the money laundering guidelines,” he explained.  

Karunanayake expressed last week that this would be the first step in creating a financial hub in Sri Lanka and assured that the Finance Ministry would instruct the Exchange Control Department, Inland Revenue Department and other necessary institutions to bring in any other satisfactory measures in order to fortify investor confidence.

However, the Sri Lanka Banks’ Association told the Daily FT that there had been no directive given to them in receiving these funds to the banking system of the country.

“It is still a proposal of the Government and thus far we have not been given any directive on this,” said Sri Lanka Banks’ Association Secretary General Upali Silva.

When asked how the ‘no questions asked’ policy applied to the banking system under the current financial regulations of the country, he explained that if the Government imposed a ruling under the amnesty, then there was no objection for the banks in accepting those funds. Otherwise, according to current regulations, individuals must provide a declaration of the source of funds.