Japanese money laundering via PABC Bank raise CB eye brows

God Father

God Father

Senior Manager - Equity Analytics

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Japanese money laundering via PABC Bank raise CB eye brows Chairm10

PABC bank is accused of encouraging Japanese to launder money through PABC Bank with the assistance of Japanese Directors which has caused in a huge foreign currency controversy and legal cases against the bank resulting in the resignation of the Chairman and the head international banking Thilani Pieris.

Japanese Director, Takshi Igarshi, Takaya Toshiyaki seems to have acted in concert with Thilani Piries and former Chairman of PABC which has resulted in the latest wave of resignations at PABC.

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A person believed to be involved in an illegal money transfer racket from abroad, has been arrested at the Bandaranaike International Airport.

Police spokesman DIG Ajith Rohana said that the suspect was arrested by the CID at the airport when he came to travel to Dubai.

He also added that this arrest was made based on illegal deposits of Rs. 86 million to his account. The suspect is a 39-year old man from Trincomalee.

“From the first quarter of 2020, Rs. 1440 million have been transferred to different bank accounts of a local private bank from the United States. It is reported that they have been sent by a person of Sri Lankan origin living in USA.”

“They are suspected to have hacked into US bank accounts and electronically transferred money illegally to these Sri Lankan accounts. The local account holder sends these funds back to US account as if it is being sent from Sri Lanka. The local account holder also gets a fair share of these illegal funds” DIG Ajith Rohana went on to say. (NewsWire)

https://www.newswire.lk/2021/05/03/us-bank-hacking-rs-1440-million-transferred-to-sl-accounts/

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APRIL 30, 2021
Pan Asia Banking Corporation PLC (PABC) Secretary Nayantha Fernado informed, by order of the Board, the Colombo Stock Exchange (CSE) that Godewatta Arachchige Rasika Dimuth Prasanna retired from his position as Chairman and Director.

Fernando disclosed this yesterday (29) under Section 8 of the Listing Rules and he further informed that the resignation took place in terms of Section No. 3 (2)(ii)(A) of the Banking Act of Direction No. 11 of 2007 of Corporate Governance as Prasanna completed his term as the Director of Pan Asia Banking Corporation PLC. Accordingly, on 1 May 2021. Prasanna completed his service of nine years, according to the said terms of the Banking Act.

Fernando further informed that by 29 April 2021, G.A.R.D. Prasanna held 34,801 of the relevant interest of shares of PABC PLC.

Also, at the meeting held yesterday (29), the Board appointed Sarath Bandara Rangamuwa as Chairman and Mahawaduge Yasalal Aravinda Perera as Director, respectively, with effect from 2 May 2021. It was informed that S.B. Rangamuwa held 125,000 of the relevant interest of shares and Aravinda Perera did not hold any interest of shares as at 20 April 2021.

Wed May 05, 2021 9:35 pm by ChooBoy · Wed May 05, 2021 9:35 pm by ChooBoy

Japanese Money Laundering methodology exposed

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Thu May 06, 2021 3:29 pm by Sstar · Thu May 06, 2021 3:29 pm by Sstar

Central bank should investigate these matters and take action to prevent any future wrongdoings by PABC and its directors.

We have not seen any statement issued by PABC nor CSE regarding this matter which is quite price sensitive.

CB is duty bound to make clarifications to the public regarding this matter and rebuild confidence in the banking system of Sri Lanka.

PREVENTION OF MONEY LAUNDERING ACT, NO. 5 OF 2006

(1) Any person who knows or has reason to believe from information or other matter obtained by him in the course of any trade, profession, business or employment carried on by such person, that any property has been derived or realised from any unlawful activity, shall disclose his knowledge or belief as soon as is practicable, to the Financial Intelligence Unit.

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Fri May 07, 2021 9:34 pm by DeepFreakingValue · Fri May 07, 2021 9:34 pm by DeepFreakingValue

Recent reporting of related party transaction by local and foreign directors of some of the commercial banks in Sri Lanka has raised concerned among the general public.

Legal framework for Related party transactions in Banks in Sri Lanka are as follows.

Transactions between affiliates
Which legal and regulatory limitations apply to transactions between a bank and its affiliates? What constitutes an ‘affiliate’ for this purpose? Briefly describe the range of permissible and prohibited activities for financial institutions and whether there have been any changes to how those activities are classified.

Affiliate is referred to as ‘related party’ under Sri Lankan law.

Section 3(7) of the Banking Act Direction No.11 of 2007 (for LCB) and Banking Act Direction No.12 of 2007 (for LSB) requires the bank’s board to avoid any conflicts of interest that may arise from any transaction of the bank with ‘related parties’ and to ensure that ‘more favourable treatment’ is not given to them.

Related parties are:

- any of the bank’s subsidiary companies;
- any of the bank’s associate companies;
- any of the directors of the bank;
- any of the bank’s key management personnel;
- a close relation of any of the bank’s directors or key management personnel;
- a shareholder owning a material interest in the bank; and
- a concern in which any of the bank’s directors or a close relation of any of the bank’s directors or any of its material shareholders has a substantial interest.

Types of transactions covered include:

the grant of any type of accommodation, as defined in the Directions on maximum amount of accommodation;
the creation of any liabilities of the bank in the form of deposits, borrowings and investments,
the provision of any services of a financial or non-financial nature provided to the bank or received from the bank; and
the creation or maintenance of reporting lines and information flows between the bank and any related parties which may lead to the sharing of potentially proprietary, confidential or otherwise sensitive information that may give benefits to such related parties.

‘More favourable treatment’ includes granting of ‘total net accommodation’, exceeding a prudent percentage of the bank’s regulatory capital, as determined by the board, charging lower interest or paying more than the bank’s deposit rate for a comparable transaction with an unrelated comparable counterparty; providing preferential treatment or providing or receiving services without an evaluation procedure.

Most banks are listed with CSE and are also expected to comply with the CSE’s related-party transaction regulations.

Mon Sep 27, 2021 10:04 pm by **God Father** · Mon Sep 27, 2021 10:04 pm by **God Father**

Pan Asia Bank (PABC.N0000) to take a decision to remove Japanese Tantei - Taksahi Igarshi from the board of directors by early October.
New Faces to be introduced to the board. Good times for PABC share price ahead..