Four managers of private commercial banks arrested over an alleged illegal transfer of USD 1 billion by a Colombo Fort-based money changer have been remanded until 20 August by the Colombo Magistrate’s Court.
The four suspects were arrested yesterday (17) by the Financial Crimes Investigation Division (FCID) of the Criminal Investigation Department (CID), in connection with investigations into the alleged transfer of the funds without the import of any goods into Sri Lanka.
The suspects, who are managers of four separate private commercial banks, were arrested while at their respective banks.
Police said the arrests were believed to be the first of their kind in Sri Lanka in connection with an investigation of this nature.
According to investigators, the main suspect allegedly involved in the transaction had made regular weekly payments to the four bank officials in return for their assistance.
The officials had allegedly received varying amounts of Rs 30,000, Rs 50,000 and Rs 100,000 per week at different times. One of the arrested managers had reportedly received approximately Rs 1 million on a single occasion.
The investigation is centred on an alleged transfer of USD 1 billion by the money changer without any corresponding import of goods into the country.
Meanwhile, the Computer Emergency Readiness Team (CERT) has warned the public of a separate financial fraud in which individuals are impersonating officials of institutions including the Central Bank of Sri Lanka (CBSL) and the FCID.
According to complaints received by the authorities, the fraudsters initially contact potential victims via mobile phones or social media platforms and seek information about their savings and fixed deposit accounts.
The suspects then claim to have information about the victims’ bank deposits and allege that complaints have been lodged stating that the funds were obtained through fraudulent means.
They subsequently threaten the victims with an FCID investigation and send forged letters bearing fake CBSL letterheads, purported officials’ signatures and rubber stamps.
The victims are then instructed to transfer money to a specified private bank account, which the fraudsters claim belongs to an FCID officer. In some cases, victims are told to transfer half of their deposits to the account.
After making the transfer, victims are asked to provide a copy of the bank deposit slip as proof of payment. They are also instructed to obtain a letter requesting that the money be returned to their original account after the purported investigation is completed.
Authorities said the fraudsters reportedly possess Police uniforms, bank identification cards and rubber stamps to make their claims appear legitimate.
The public has been urged not to provide financial information or transfer money in response to such requests, and to exercise extreme caution when contacted by individuals claiming to represent law enforcement or financial institutions.