| dc.description.abstract | Money Laundering (ML) is a transnational
offence involving multiple participants. As much as the
crime in nature is perplexing, the investigatory process is
complex as well. ML can happen in many ways including
arms smuggling, human trafficking, illegal currency
exchange, and pyramid schemes. Due to its abhorrent
nature, ML has disastrous consequences on the economy
and society. In economics, it causes tax evasion, distorts
markets, and erodes financial institutions. Socially it
increases crime rates and causes inequality and
corruption. Sri Lanka due to its strategic geographic
position faces ML threats. In light of that, the paper
examines the socio-economic consequences of ML in Sri
Lanka, with a specific focus on its impact on social
conflicts, which served as the research problem. The
objectives derived are to understand how ML implies social
and economic settings, to identify how it contributes to
social conflicts, to explore the current legal and regulatory
challenges and weaknesses that persist, and to identify the
potential measures to mitigate the socio-economic impact
of ML in Sri Lanka. The researchers have utilized a
qualitative methodology and both primary and secondary
data have been utilized to analyze the setting and arrive at
conclusions. Primary data was collected by conducting
structured semi-structured interviews with Anti Money
Laundering specialists in banking and non-banking
financial institutions. Whereas, secondary data was
collected by perusing scholarly articles. In the end,
researchers have showcased that despite numerous
initiatives by the Financial Investigation Unit (FIU) of the
Central Bank of Sri Lanka (CBSL), other investigatory
units, and legal frameworks the lapses in the frameworks
hinder the justice process causing social disruption as well
as economic divisions. | en_US |
