Probe the CJ's transactions under AML-FT laws

Money laundering is a serious offence in today's globalised commercial world. Just this week, HSBC Bank was fined a staggering $1.9 b for its involvement in aiding and abetting money laundering activities through its operations in Mexico, and the Standard Chartered Bank was fined a hefty $ 350 m for its misdemeanours in transactions with Iran.

Prior to that, UBS and several other international banks have been rapped on the knuckles by Central Bank regulators from different parts of the world and fined about $ 1 b by the US authorities.

These recent reactions of regulators show what a serious menace money laundering has become, and how much importance they attach to eradicate that menace. In fact hardly a day goes by, without some reference being made to Anti-Money Laundering and Financing of Terrorism (AML-FT)counter measures being launched by the authorities.

In addition, many conferences are held, bankers are alerted, and regulators share intelligence reports about AML-FT,while the public too is kept informed with regular articles, announcements and advices.

In Sri Lanka too, the Central Bank has stepped up its vigilance, and has launched an effective AML-FT response by consistently alerting bankers and the public about possible methods of money laundering and terrorism financing, and by requesting them to be alert to any instances of such behaviour.

The Financial Intelligence Unit (FIU) is also known to have taken action against the TRO, other terrorist financiers, and even well-known politicians. According to public knowledge, prosecutions have been regularly carried out and several matters are currently supposed to be pending before Courts.

In that respect, the Sri Lankan Courts would have to play a key role in discouraging and eradicating money laundering and terrorism financing practices, and hopefully then, this global menace could be dealt with, in the local context as well.

For such an outcome to be successfully achieved however, the judges in Sri Lanka must be fully aware of the applicable international legislation and practices and be conversant with the common methods of money laundering activities so that justice could be dispensed quickly and effectively.

The members of the judiciary must be beyond suspicion of any behaviour even remotely connected to money laundering. Towards that end, a very high standard of conduct would be necessary on the part of all judges, so that the process could be effective and credible.

But unfortunately, at present, a cloud of suspicion has been hovering over the Chief Justice (CJ) of the country, who has been found guilty by the Parliamentary Select Committee (PSC) in respect of several offences, including a series of malpractices that may be described as money laundering.

This situation has shattered the credibility of the Sri Lankan judicial system of being able to deal with the menace of money laundering, particularly since the PSC has specifically set out in its report, that further investigations must be conducted by the FIU into the transactions of the accused Chief Justice, Dr Shirani Bandaranayake.

This revelation has sent shock waves across the entire economy of the country, in that the institutions that have to dispense justice on the critical issue of money laundering have been irrevocably compromised by the behaviour of the highest judicial officer of the country.

Many people also fear that any investigations by the CID, FIU, Attorney General's Department and other relevant staff agencies, would be heavily undermined as long as the CJ stays in office, even during the interim period leading up to her impeachment.

This is because it is obvious that public servants and law officers who would be expected to carry out the anti-money laundering investigations and prosecutions, would naturally be hesitant to continue with their duties impartially, as long as the impeached CJ clings on to office.

In the meantime, it is sad to see the CJ acting in a manner completely unbecoming of a judge, participating at politically motivated Pirith ceremonies, and closely associating with known criminals who have charges against them.

It is also disgusting to see elements who have been previously backing the LTTE and rousing striking unions, now running behind the corrupt CJ and making use of her situation to further their own political ends.

It is even more pathetic to see CJ Bandaranayake falling prey to these overseas funded groups, to cover up her own money laundering and other offences.

In that background, it is now time for the public service of this country to rise to the challenge and continue their investigations to bring the CJ to justice, and not allow her official status to stand in the way of her prosecutions, in much the same way that US regulators acted against global financial institutions in order to discipline such institutions. The FIU, CID and others must carry out investigations into the CJ's transactions without fear or favour.

So far the indications are that the state agencies have been bold and independent enough to investigate the misdemeanours of the CJ's husband and file charges against him under the bribery laws, and are determined enough to unearth evidence against the CJ and furnish such information to the PSC.

Parliament too, has displayed courage by taking CJ's impeachment process to its logical end, in spite of the pressure from the US and EU anti-Sri Lanka groups.

However, buoyed by the efforts of strong foreign supporters, a few members of the judiciary, lawyer groups and the Opposition, seem to be attempting to de-rail the impeachment process and obstruct the removal of the now-pronounced guilty CJ.

Such persons must however be reminded that the entire world is already aware of the CJ's multitude of bank accounts and the systematic reduction of her bank balances to zero on important and sensitive dates.

Those and other actions of the CJ provide irrefutable material that she has been indulging in the concealment of her transactions from the regulators' keen eye. Therefore, if justice is to done, her actions cannot and should not be allowed to go unpunished.