Jun 20, 2020

Banks implement strict policies on politicians

It is reported that members of political families (Politically Exposed Person) and high ranking officials of the government are subject to a number of restrictions on opening bank accounts.

Although the relevant laws have been existing for a considerable period of time, recently the Central Bank has strongly advised the bank authorities to strictly enforce it.

Politically exposed persons, subject to PEP law, can request a bank account,a loan or leasing facility. However,the requests on certain occasions need to be approved by the Board of Directors of the relevant bank or the Central Bank of Sri Lanka.

Those who have experienced this process have told 'Deshaya' that people identified as politically exposed persons will have to wait months to open a bank account or obtain a loan facility, which is unfair.

A bank manager, who intended to remain anonymous, stated that if such a person requested approval to obtain a loan or open an account, it will be compared with the list of names of the members of political families and high ranking government officials and then it will be forwarded for the approval of the relevant authorities.He added that these laws have been strictly enforced to curb the attempts to convert black money, corruption and malpractices.