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

By Ajith Siriwardana   
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.