Money-laundering warning from India

After cautioning Indian markets about possible money laundering and terror-funding risks from Iran and North Korea, market regulator Securities and Exchange Board of India (SEBI) is to issue a warning for funds from eight more countries, including Sri Lanka.

The warning could be issued soon by the Reserve Bank of India (RBI) to banks and financial institutions seeking caution in dealings with entities and funds related to the eight nations, which also include Bolivia, Cuba, Kenya, Myanmar, Sri Lanka and Syria, the moneycontrol.com reported.

The warning follows a global caution notice from the Financial Action Task Force (FATF), the global oversight and policy-framing body for rules to combat money laundering and terror funding risks to international financial markets.

The FATF periodically issues such public notices to various foreign governments, which subsequently forward the same to their respective financial regulators.

The FATF also listed out Bolivia, Cuba, Ethiopia, Kenya, Myanmar. Sri Lanka, Syria, Turkey as countries with strategic deficiencies in their rules to combat money laundering and terror funding.

FATF said these eight countries "have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies".