No lawsuit completed on illegal pyramid schemes determined by CB: Governor raises concerns

Colombo, January 27 (Daily Mirror) - The law enforcement authorities are yet to complete any law suit with regard to some 20 illegal pyramid schemes which were determined by the Central Bank to have been engaged in illegal activities under the Banking Act, Central Bank governor Dr. Nandalal Weerasinghe said.

The Governor said the oldest pyramid schemes were determined by the Central Bank in 2011, but the legal process is still ongoing.

He revealed this responding to a question raised by Deputy Minister Chaturanga Abeysinghe during a meeting of the Committee on Public Finance, which was held at the Parliament complex recently.

The Governor said the Central Bank investigate and determines whether a particular institution is engaged in illegal activity under Section 83 (C) of the Banking Act and that after determination, it is forwarded to the CID. "The CID investigate further and then forward it to the Attorney General's Department for prosecution. We determined the first illegal scheme in 2011. But, that is still in the process," he said.

He said a massive effort must be made by all law enforcement authorities, such as the prosecution authority and the judicial process. "Even if some cases were filed, it takes a lengthy time to complete the case," he said.

The Governor said the Central Bank is doing more awareness campaigns due to the shortcomings in the process. "The best way is to prevent people getting into this scheme through financial illiteracy," he said.

He said shortcomings in the legal framework and the delayed judicial process must be addressed.