COLOMBO, Aug. 18 (Xinhua) -- Sri Lanka is preparing to tighten its foreign exchange laws by introducing criminal liability for unauthorized transfers of money overseas, following approval from the cabinet on Tuesday.
The proposed changes will be made to the Foreign Exchange Act, No. 12 of 2017, after the government identified gaps in the existing law that restrict criminal action against certain outward remittances.
One area covered by the planned amendment involves advance payments made abroad for the import of goods. If the goods linked to such a payment are not brought into Sri Lanka within a reasonable period, the remittance could be regarded as an unauthorized transfer of foreign exchange.
Current legislation allows the Central Bank of Sri Lanka to impose a financial penalty equal to the value of an unauthorized remittance, calculated in Sri Lankan rupees. The act, however, does not presently classify such conduct as a criminal offense.
The government said this limits the ability of investigative and law-enforcement agencies to pursue criminal proceedings in cases involving unauthorized movement of funds out of the country.
The cabinet therefore gave policy approval to introduce specific criminal provisions into the law. The proposal was submitted by the president in his capacity as minister of finance, planning and economic development. ■