Governor of the Central Bank of Sri Lanka Ajith Nivard Cabraal says they will treat backchannel money transfers from foreign countries as illegal transactions.
Cabraal said necessary steps will be taken by conducting investigations together with the Police.
Speaking to media today Ajith Nivard Cabraal said inward foreign remittances must be made through official channels as remittances have decreased by USD 300 million during the past month.
He said this translated to Rs.72 billion distributed in Sri Lanka through backchannel money transfers.
The Governor questioned who had such sums of money to credit such large sums of currency to accounts of Sri Lankan residents.
Governor Cabraal added they will investigate Lankan residents under money laundering regulations for transferring large currency amounts or money to other accounts without a valid reason.
He stressed the Central Bank under FIA rules will be able to block accounts of individuals who engage in such transfers