The Central Bank of Sri Lanka says that only two suspicious transaction reports have been submitted by lawyers in Sri Lanka between 2020 and 2026.
Speaking at a conference organized by the Bar Association of Sri Lanka, Central Bank Governor Dr. Nandalal Weerasinghe said the situation was deeply concerning.
He pointed out that lawyers and notaries are designated as accountable institutions under the Financial Transactions Reporting Act. Therefore, they have a legal obligation to report suspicious transactions to the Financial Intelligence Unit in connection with property transactions, managing clients’ money, and establishing companies or trusts.
The Governor said such suspicious transactions must be reported to the Financial Intelligence Unit within two working days.
He further emphasized that the active involvement of Sri Lanka’s legal sector is essential ahead of the Asia/Pacific Group on Money Laundering (APG) mutual evaluation, scheduled to be held from October 26 to November 6.
Acknowledging the shortcoming, Bar Association of Sri Lanka President Rajeev Amarasuriya said lawyers must take the lead in preventing mechanisms used to legitimize illegally obtained money.
Meanwhile, Chairman of the Financial Action Task Force and retired Supreme Court Justice Buwaneka Aluwihare stressed that attorney-client confidentiality must not be used as a shield to conceal proceeds of crime.
