COLOMBO, October 16, 2026 — CID investigators tell Colombo Magistrate’s Court that four private bank officers allegedly received cash payments for facilitating overseas transfers worth approximately US$1 billion through a network of 89 purportedly fictitious companies.
Four private bank officers allegedly received nearly Rs. 12 million in payments for facilitating the transfer of approximately US$1 billion overseas through 89 purportedly fictitious companies, the Criminal Investigation Department (CID) informed the Colombo Magistrate’s Court on October 15.
Investigators told court that the alleged operation involved telegraphic transfers made without corresponding imports, at a time when Sri Lanka was experiencing a severe economic crisis.
The Financial Crimes Investigation Division of the CID presented details of the investigation before Colombo Chief Magistrate Asanga S. Bodaragama during proceedings involving eight suspects.
Among those named were principal suspect Jeffrey Mohamed, Mohamed Musammil Mohamed Inphas and Sheikh Mohideen Mohamed Hatheef, who were in remand custody in connection with the case.
The four bank officers implicated in the investigation had previously been released on bail but did not appear in court for the hearing, according to the CID’s account.
CID Traces Transfers Through 89 Allegedly Fictitious Companies
Investigators alleged that Jeffrey Mohamed obtained identity cards belonging to individuals residing in Dubai and brought them to Sri Lanka to establish companies using forged documentation.
The companies were allegedly registered under the identities of those individuals and subsequently used to facilitate overseas transfers.
Of the 89 purportedly fictitious companies linked to the operation, investigators told court that they had identified 72.
According to the CID, the transfers were carried out electronically through telegraphic transfers, commonly known as TT payments, despite no goods being imported in return.
The total amount allegedly transferred was placed at Rs. 19,000 crore, equivalent to Rs. 190 billion, and described in the source account as approximately US$1 billion.
Investigators further claimed that the transactions exceeded an applicable US$50,000 limit under import and export regulations, with bank officers allegedly assisting in processing transfers through the network of companies.
The precise legal provision governing that limit, the dates of the transactions and whether the restriction applied to every transfer described were not specified in the supplied proceedings.
The alleged involvement of banking personnel is central to the investigation because such transfers ordinarily require financial institutions to process and document the movement of funds.
Bank Officers Allegedly Received Cash and Account Transfers
The CID told court that bank officers who allegedly assisted the operation were initially rewarded with cash handed to them directly.
Investigators claimed that subsequent payments were deposited into their bank accounts on several occasions.
The amounts identified in the court submissions included Rs. 810,000, Rs. 1,725,000, Rs. 961,000, Rs. 700,000 and Rs. 600,000.
According to investigators, the sixth suspect transferred Rs. 961,000 to one bank officer.
The CID also referred to payments of Rs. 50,000 and Rs. 185,000 involving a third suspect identified as a bank officer, with six additional payment occasions mentioned in the account presented to court.
The precise breakdown of those payments and whether the figures represented individual transactions or multiple instalments requires clarification from the banking records and court proceedings.
Investigators placed the total alleged inducements to the four bank officers at nearly Rs. 12 million.
These financial transactions form part of the prosecution’s allegations and have not been established as unlawful payments by a final judicial determination.
Investigators Allege Computer Data and Invoices Were Destroyed
The CID further informed court that suspects had allegedly attempted to destroy evidence after becoming aware that information about the operation had reached the police.
According to investigators, relevant computer data was deleted and invoice documents were burned.
The alleged destruction of records is significant to the investigation because invoices and electronic banking documents could help establish whether overseas payments were supported by genuine commercial transactions.
Investigators are examining the suspected transfers under the Prevention of Money Laundering Act.
The original court account does not specify what digital evidence has been recovered, whether deleted records have been restored or whether the allegedly destroyed invoices were independently documented.
Those matters remain subject to the continuing investigation.
Magistrate Rejects Bail Request for Principal Suspect
CID officers requested that the suspects in remand custody not be released on bail, arguing that investigations under the Prevention of Money Laundering Act had not been completed.
Lawyers representing Jeffrey Mohamed asked the court to grant him bail in the present proceedings, pointing out that he had already obtained bail from the Colombo High Court and the Negombo Magistrate’s Court in other matters.
Chief Magistrate Bodaragama rejected the request.
The Magistrate observed that the earlier bail orders related to separate cases and did not provide grounds for releasing the principal suspect in the investigation before him.
The court also took into account the fact that the financial crime investigation remained incomplete.
Accordingly, the Magistrate ordered that the remanded suspects remain in custody until October 22, 2026.
The alleged overseas transfers, payments to banking personnel and destruction of records remain under investigation. No conviction was reported in the supplied account of the hearing.
Further proceedings are scheduled for October 22, when the court is expected to consider the progress of the investigation and the suspects’ continued remand.
