CB initiates regulatory action against errant money changers

• Issues Notices to four authorized money changers; publicises their names  
• Says if they don’t comply, will suspend their operations and revoke licenses 

In response to several complaints that certain authorized money changers are engaged in activities which are not in compliance with the Directions issued under the provisions of the Foreign Exchange Act No. 12 of 2017 (FEA), the Central Bank said it is conducting a series of spot examinations to strengthen the monitoring and supervision of these entities. 

In a quite unusual move, the Central Bank in a statement mentioned the names of four authorised money changers who had not complied with directions issued to them under the FEA provisions.

Those were: New Natasha (Pvt) Ltd at No. 12, Super Market Complex, Wennappuwa; George Michael Holdings (Pvt) Ltd at No. 157, Chilaw Road, Wennappuwa; Royal Money Exchange (Pvt) Ltd at No. 55, Galle Road, Colombo 06 and Prasanna Money Exchange (Pvt) Ltd at No. 57, Galle Road, Colombo 06.

The Central Bank said after informing the Finance Minister, Notices had been issued to them to comply with the relevant directions with a specified time period.
“In the event the errant authorized money changers fail to rectify the issues communicated through the Notices, the Central Bank will be compelled to suspend and to revoke the permits issued to such authorised money changers,” the Central Bank statement said.

“The general public is also informed that authorised money changers have no authority to transact foreign exchange at rates higher than those offered by the banks to such money changers,” it added.