Alleged mastermind behind Rs. 21 Billion illegal Dollar transfer network arrested

Colombo, June 21 (Daily Mirror) - The Financial Investigation Division has arrested the alleged mastermind behind a large-scale money laundering operation accused of illegally transferring more than Rs. 21 billion (over US$700 million) out of Sri Lanka under the guise of importing goods.

According to investigators, the operation had been active since 2023 and involved the unlawful remittance of foreign currency through a company identified as A.Y. Investments, based in Colombo Fort.

The suspect, identified as Jeffry Mohamed, was allegedly operating as the director of the firm and is accused of facilitating illegal overseas money transfers for a number of importers. 

Police claim the scheme enabled businesses to transfer funds abroad outside legal channels, resulting in significant losses in government tax and customs revenue.

The alleged racket came to light following disclosures made in Parliament by Public Security Minister Ananda Wijepala, prompting an investigation by the Financial Crimes Investigation Division (FCID).

Investigators said the probe 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. During investigations, officers uncovered evidence that bank accounts had been opened in the names of 36 low-income individuals and subsequently used to carry out the transactions. Police are also investigating 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 acquired using proceeds from the alleged scheme, have been seized.

The suspect was produced before the Colombo Chief Magistrate's Court on June 20, where they obtained a seven-day detention order to continue questioning.

Police have launched further investigations to identify and arrest other individuals, including businessmen and traders, suspected of using the illegal remittance network.