US$1 Bn Fraud? Four Private Bank Officials Remanded

COLOMBO (News 1st); Four executive officers, including managers attached to four private banks, who were arrested in connection with an alleged scheme involving the illegal transfer of nearly US$1 billion overseas using fraudulent information, have been remanded until August 20.

The order was issued after the suspects were produced before Colombo Additional Magistrate Liyan Varushavithana.

The suspects were arrested earlier on Monday (17) in connection with an investigation into the alleged illegal transfer of nearly US$1 billion overseas by submitting false documentation claiming that goods were being imported into Sri Lanka.

Investigators have revealed that one of the arrested private bank branch managers is linked to the fraudulent transfer of approximately US$5.5 million.

According to investigations, a sales promotions manager attached to another private bank had carried out 25 telegraphic transfer transactions, resulting in the transfer of US$647,207 overseas.

Investigators have also uncovered that an executive officer attached to another private bank had facilitated 1,067 electronic fund transfers.

The total amount transferred overseas through those transactions is alleged to be US$24.6 million.

Police further stated that another executive officer arrested in connection with the case had allegedly transferred approximately US$32 million overseas through 943 electronic fund transfer transactions.

Investigators say the suspects had acted in violation of rules and regulations issued by the Central Bank of Sri Lanka.

Police further noted that information uncovered during the investigation suggests that the suspects had received financial benefits in exchange for facilitating the transactions.

Investigations have also revealed that customs reports and other supporting documents were allegedly forged by the suspects.

The Police Financial Crimes Investigation Division, which is conducting the inquiry, stated that the suspects had also provided training to other individuals on preparing fraudulent documentation.

Meanwhile, the principal suspect in the case, Jiffry Mohamed, remains in remand custody until August 20.

He was remanded when he was produced before Colombo Chief Magistrate Asanga S. Bodaragama on August 6.

The Financial Crimes Investigation Division arrested the suspect on June 19 in connection with allegations that nearly US$1 billion had been illegally transferred overseas from 2023 to date under the guise of importing goods into the country.