• CIABOC complaint over Rs 52 m apartment 

A complaint has been lodged with the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) against a former Head of the Financial Crimes Investigation Division (FCID), alleging that a luxury apartment worth more than Rs 52 million was obtained as a bribe to suppress a money laundering case involving nearly Rs 7.2 billion.

The complaint was filed by the Citizens’ Power Against Bribery, Corruption and Waste organisation, which has called for an investigation into the conduct of the former FCID Chief and other individuals allegedly connected to the transactions.

According to the complaint, the former FCID Chief was responsible for investigating a money laundering case filed before the Colombo Magistrate’s Court in 2015 involving a suspect who had previously been indicted and convicted in the US.

The suspect is alleged to have defrauded US citizens of approximately Rs 7,246 million and subsequently laundered a substantial portion of those funds in Sri Lanka.

The complaint states the FCID had obtained Court orders preventing the suspect and his wife from leaving the country and freezing assets believed to have been acquired through the alleged offences.

However, the organisation alleges the investigation was subsequently weakened after the former FCID Chief received a bribe from the suspect.

According to the complaint, a company was incorporated in October 2015, while the money laundering investigation was underway, and subsequently purchased a luxury apartment in February 2016 for approximately Rs 52 million.

It alleges that the transaction was linked to the former FCID Chief and formed part of an arrangement through which the money laundering investigation was suppressed.

The complaint further alleges that another company was incorporated three days after the apartment was purchased, with the wives of the suspect and the former FCID Chief serving as directors. The same Colombo Three apartment was allegedly used as the registered address of the company.

“These transactions require detailed examination by the CIABOC to determine the source of the funds used to purchase the apartment and the purpose behind the establishment of the companies during the period in which the money laundering investigation was underway,” the complaint states.

It further alleges that, following the transactions, the former FCID Chief took steps that resulted in the suspect being released from the case and the restrictions imposed on him, including travel restrictions and orders freezing assets, being lifted.

The organisation has requested CIABOC to investigate whether the former FCID Chief abused his official position and whether the apartment and other transactions constituted unlawful benefits provided in exchange for influencing the handling of the money laundering investigation.

It has also called for an investigation into all individuals and entities connected to the alleged transactions, including the companies involved, their financial records, property dealings and the source of funds used to acquire the luxury apartment.