Rs. 210Bn money trail: Mastermind detained, hunt on for accomplices

Colombo, June 22 (Daily Mirror) - The alleged mastermind behind a large-scale money laundering operation accused of illegally transferring more than Rs. 210 billion (over US$700 million) out of Sri Lanka under the guise of importing goods has been detained by the Financial Investigation Division, with further investigations now underway.

The suspect, identified as Jeffry Mohamed, is alleged to have operated as the director of Colombo Fort-based A.Y. Investments and facilitated illegal overseas money transfers for a number of importers. Investigators say the operation had been active since 2023 and enabled businesses to remit funds abroad outside legal channels, resulting in significant losses in government tax and customs revenue.

The investigation was launched following disclosures made in Parliament by Public Security Minister Ananda Wijepala and gained momentum after the arrest of a suspected drug trafficker, whose interrogation reportedly revealed links between the money transfer network and several organised crime figures. Police believe the system was also used to move proceeds from narcotics-related activities out of the country.

The suspect was arrested on June 19 while allegedly hiding at a luxury apartment complex in Negombo. Investigators have since uncovered evidence that bank accounts were opened in the names of 36 low-income individuals and used to conduct the transactions. Police are also examining the possible involvement of bank officials in facilitating the operation.

Police said the suspect admitted to charging a commission of Rs. 2 for every US dollar transferred through the network. Several luxury vehicles valued at more than Rs. 200 million, believed to have been purchased using proceeds from the alleged scheme, have been seized.

The suspect was produced before the Colombo Chief Magistrate’s Court and was granted a seven-day detention order for further questioning. Police said investigations are continuing to identify and arrest other individuals, including businessmen and traders, suspected of using the illegal remittance network.