July 23, 2017
Sri Lanka’s banking regulator is flexing its muscles to combat money laundering risks and is considering going after ‘trust’ accounts which may be whitewashing dirty cash.
Extreme care has to be taken on trust, as they are one of the main channels via which money has been laundered in the past, senior Central Bank (CB) officials, who declined to be named, said. With a bank trust account, the bank serves as custodian and a trustee keeps legal control of assets in the account. These assets can include cash, savings bonds, stocks, bonds, mutual funds, real estate and other property and/or investments.