Sri Lanka Statement

by Mr. Satya Rodrigo, Counsellor & Alternate

At the 53rd Session of the Commission on Narcotic Drugs

Vienna: 11th March 2010

 

Item 8. Countering money-laundering and promoting judicial cooperation to enhance international cooperation:

a)    Countering money-laundering

b)    Judicial cooperation

 

Mr. Chairman,

 

As many of us are aware, there is a close nexus among terror groups and criminal gangs in sharing terror technology, arms, illegal fundraising, money laundering, trafficking of drugs and other related crimes. Criminal and terrorist groups such as the LTTE, exploit bank secrecy and tax havens, to raise funds and carry out money laundering activities to finance its terrorist activities.

 

When countering money laudering issues, Sri Lanka would urge countries to show greater vigilance and commitment on tackling inter-linked issues related to financing activities of criminal and terrorist groups, as well.

 

Since 2006, offences under the dangerous drug control ordinance fall within money laundering. The Financial Intelligence Unit (FIU) of the Central Bank of Sri Lanka operates in terms of the relevant provisions of the Financial Transactions Reporting Act (FTRA) No 6 of 2006 and is tasked with the collection of information on financial transactions that may relate to money laundering, financing of terrorism and unlawful activities defined in the FTRA.  The FIU conducts investigations into suspicious financial transactions, disseminates information and details of investigations to relevant regulatory and law enforcement authorities to institute legal/enforcement action and issues regulations on customer due diligence and suspicious transactions to prevent offences covered in relevant statutes.

 

During 2008, the coverage of the reporting institutions was expanded to include insurance industry as well. The FIU’s IT System analyse information/data reported by reporting institutions to detect suspicious transactions. In 2008, the FIU was able to scrutinize over 2.5 million transactions and examine 247 suspicious transactions. Reporting institutions submitted reports on 90 suspicious transactions and after conducting preliminary investigations, 12 suspicious transactions were referred to the law enforcement agencies. Ultimately, the Attorney General’s Department and the Criminal Investigation Department (CID) has filed indictments in relation to two such suspicious transactions.

 

Sri Lanka is committed to international cooperation to address money laundering.  Sri Lanka is a member of the Egmont Group – the association of Financial Intelligence Units (FIUs) established in June 1995 to enhance mutual co-operation and to share information in detecting and combating money laundering and terrorist financing among member countries.

 

Sri Lanka is also a member of the Asia Pacific Group on Money Laundering (APG) and was privileged to host a APG workshop in October 2008 to discuss various new methods, strategies and trends of worldwide money laundering and financing of terrorism.

 

 

 

Mr. Chairman,

 

Sri Lanka continues to closely work through regional mechanisms to address drug related issues. In the region, Sri Lanka works in close cooperation with the South Asian Association for Regional Cooperation (SAARC) and the United Nations Office of Drugs and Crime (UNODC) on regional and transnational narcotics issues. Sri Lanka is a party to the SAARC Convention on Narcotic Drugs and Psychotropic Substances, which includes provisions for extradition for narcotics-related offenses and mutual legal assistance. The Convention seeks to reinforce and supplement at the regional level, the relevant international conventions and promote regional cooperation among member states. The Convention envisages the widest measures for mutual legal assistance among member states in investigation, prosecution and judicial proceedings in respect of drug offences through an appropriate regional mechanism.

 

Under Sri Lanka’s chairmanship of SAARC in 2008, the SAARC Convention on Mutual Legal Assistance in Criminal Matters was finalized and signed in 2008. This convention facilitates cooperation amongst members in mutual legal assistance in criminal matters, namely investigations, prosecution and resulting proceedings. Article 13 of the Convention operates to extend mutual cooperation to seize or confiscate funds collected for the purposes of financing of criminal acts, trafficking in narcotic drugs, including acts of terrorism and to prosecute persons and groups involved in such activities.


Last year, at a meeting in Sri Lanka, the Foreign Ministers of SAARC countries also had discussions and agreed on the promotion of cooperation and exchange of information, consistent with respective domestic legal and administrative regimes, improve immigration and customs control measures to detect and prevent the international movement of terrorists and their accomplices and trafficking in arms, narcotics and psychotropic substances or other materials, intended to support terrorism and also consider the development of an integrated border management mechanism.

 

Sri Lanka will continue to support collective international efforts between UNODC and states to tackle money laundering, drug trafficking and other related crimes.

 

Thank you.