All banks told to double-check dubious deals

Both private and state banks have been warned by the Central Bank to keep an eye on persons withdrawing large sums of money or receiving large deposits from overseas, banking sources said.

Accordingly, some of the private banks in Colombo have put up notices that under existing banking regulations, they would have to keep the Central Bank informed about large withdrawals or deposits.

The banks have said they would be liable, if they fail to provide such information. The action is being taken under the Suppression of Terrorism Financing, Anti- Money Laundering and Financial Transaction Reporting Acts.

Meanwhile, permanent north-east residents living in Colombo and wishing to open a bank account would have to submit a copy of their police registration.