New Sri Lanka central bank unit to prosecute directors of failed finance firms

ECONOMYNEXT – Sri Lanka’s Central Bank will set up an ‘Enforcement Unit’ to prosecute the Board of Directors and senior management of failed finance companies who are involved in fraud and malpractices, Governor Indrajit Coomaraswamy said.

The regulator will also crack down on illegal finance schemes by setting up a new unit, he said in a speech on the central bank’s road map for 2017.

The unit will be made up of officers with specialised skills in the areas of law, forensic and investigation skills and accounting, and will liaise with and assist law enforcement authorities on related investigations, he said.

This was aimed at strengthening the existing enforcement framework on prohibited schemes.

“This unit will also deal with matters relating to unauthorised deposit taking institutions,” Coomaraswamy said.

The Central Bank will do an effective public awareness campaign involving mass media to enhance awareness of the general public on the dangers of engaging in unauthorised investment schemes, and institutions authorised by the Central Bank to accept deposits.

(COLOMBO, Jan 03, 2016)