36 Companies Linked to Rs 190 Bn Money Trail : Fake Imports Used to Move Funds Abroad

COLOMBO (News 1st); A suspect identified as Jeffrey Mohamed, who was arrested over an alleged scheme to illegally transfer nearly 190 billion rupees out of Sri Lanka under the guise of importing goods, has been remanded until the 9th of next month by the Colombo Chief Magistrate’s Court.

The order was issued by Colombo Chief Magistrate Asanga S. Bodaragama after the suspect was produced before court following his arrest and subsequent detention under detention orders for questioning by the Financial Crimes Investigation Division.

Presenting facts before court, Senior State Counsel Oswald Perera stated that the suspect had transferred nearly 190 billion rupees overseas by falsely claiming to import goods from foreign countries.

It was further revealed that the funds had been remitted as US dollars via telegraphic transfers through a Colombo Fort-based entity named A.Y. Investment.

The prosecution informed court that the suspect had established multiple bank accounts in selected banks under his own name as well as under the name of the said company to facilitate these transactions.

Investigators have also uncovered details of at least 36 additional companies allegedly linked to similar financial dealings carried out in this manner.

It was further stated that although large sums of money had been sent abroad under the pretext of importing goods, no corresponding imports had taken place.

Authorities emphasized the need to investigate how the funds were generated and the purpose behind transferring such vast amounts overseas.

The Senior State Counsel also told court that funds obtained from drug traffickers had allegedly been deposited into bank accounts operated under the suspect’s name, adding another layer to the ongoing investigation.

The prosecution argued that the suspect had engaged in large-scale money laundering by transferring funds whose origins cannot be legally verified and requested that he be remanded pending further investigations.

Appearing for the defense, the suspect’s counsel sought bail on suitable conditions.

However, after considering the submissions made by both parties, the Chief Magistrate rejected the bail application and ordered that the suspect be remanded until the 9th of next month.