• Central bank signs MoU with NGO Secretariat as a step in curbing such activities
• The previous government initiated the process of drafting a new law to monitor and supervise NGOs 

By Kelum Bandara   
With Sri Lanka being identified as a country with medium risk for money laundering and terrorist financing even with the involvement of NGOs, the National NGO Secretariat signed a MoU with the Finance Intelligence Unit of Central Bank yesterday to step up national efforts in curbing such unlawful activities, an official said yesterday.  
The Financial Action Task Force (FATF) which is the global money laundering and terrorist financing watchdog has identified Sri Lanka as country with medium risk.  
It sets international standards that aim to prevent these illegal activities and the harm they cause to society.   
Central Bank Governor Nandalal Weerasinghe who also attended the function along with other key officials. Sri Lanka’s actions in this regard will be reviewed by the FATF in April, next year.   
The FATF has made 42 recommendations to be taken by Sri Lanka, and one of them is related to the NGO operations. The enactment of legislation to supervise and monitor NGO operations is also a step to be taken in this regard.   
In Sri Lanka, there are 1851 NGOs registered but only 618 remain active the moment. Some of the NGOs have been identified as ones contributing to the country’s social, economic development whereas others are involved in suspicious transactions. The previous government initiated the process of drafting a new law to monitor and supervise NGOs.