Illegal transfer of USD 1 bn: Four bank managers remanded

The Financial Crimes Investigation Division of the Police has arrested four bank managers in connection with an alleged illegal transfer of USD 1 billion. The four individuals were remanded by the Fort Magistrate court until August 20th for further investigation. The government disclosed the irregular transfers in Parliament recently.

Investigations have shown that the suspects allegedly received weekly payments to facilitate the operation. The Central Bank has been informed of the ongoing investigation and more arrests are expected.

Bank managers were apprehended as part of an investigation into the alleged transfer of USD 1 billion without importing any goods into the country. The incident came to light when the government revealed the irregular transfers in Parliament. The Financial Crimes Investigation Division, a part of the Criminal Investigation Department, is leading the probe into the matter.

Sources revealed that the suspects allegedly received weekly payments to carry out the operation. The respective banks have also started their own inquiries following the high-profile criminal investigation. The Central Bank has been notified of the ongoing investigation, and more arrests are anticipated.

The United National Party (UNP) has called on President Anura Kumara Dissanayake to reveal the identities of those responsible for fraudulently transferring nearly USD 1 billion since 2023. UNP leader Ranil Wickremesinghe, who held the Finance portfolio until July 2022, has been challenged to disclose the information. Wickremesinghe, now the President, maintains that the Finance Ministry should be able to provide an explanation regarding the transfers, which took place over a period of nearly four years without the necessary sanction from the Central Bank.

Former Minister Dr. Rajitha Senaratne questioned the President's ability to disclose whether the funds were illegally transferred from the public or private sector. He demanded an explanation for the fraudulent transactions and urged the President to furnish documentary evidence to support his claims. The UNP's top spokesman challenged President Dissanayake to provide the required evidence, emphasizing that as the Minister of Finance, he should be able to reveal the identities of the culprits promptly.

Dr. Senaratne also highlighted that the Chairman of the Committee on Public Finance, MP Dr. Harsha de Silva, had announced that his committee would address the massive banking fraud in Parliament this week. The President informed the Parliament that the illicit outflows included proceeds generated through criminal activities, such as drug trafficking.