TISL cautions govt. of loosening restrictions to accept foreign currency

COLOMBO (News1st): Transparency International Sri Lanka (TISL) has cautioned the government of the repercussions it could face by loosening restrictions on accepting the foreign currency. Recently, the government introduced a Special Deposit Account to attract foreign currency for periods of six years or one year, offering additional interest rates, amidst the COVID-19 pandemic. "We strongly believe that any new policies should be consistent with Sri Lanka’s anti-money laundering framework," the anti-corruption body said in a statement. Sri Lanka was removed from the “Grey List” of the Financial Action Task Force (FATF) in October last year. This list includes countries that experience deficiencies in countering money laundering and terrorist financing. "Countries with escalating money laundering exposure, risk FATF blacklisting, which has far-reaching consequences on domestic banking and economic activity," the statement read. The anti-corruption body said, FATF recently recommended risk-based supervision of transactions, which would be contrary to any 'no questions' asked policy implemented by the government at present.