Detectives of Criminal Investigation Department (CID) informed courts questioned 150 people for money laundering
As per recordings Rs263 million (Dh7.62m) fraud had been noted.
Cash had been withdrawn using duplicate credit cards of foreigners using e-commerce application provided by a Sri Lankan state bank, the ‘Daily Financial Times’ reported.
A massive Rs263million loss had been incurred by the State bank in this scam and 14 suspects had been taken under CID custody.
They informed the Colombo Fort Magistrate Kanishka Wijeratne that investigations so far revealed that all suspects had received a part of the money.
Hence, they intended to extend the detention period of all suspects.
Meanwhile, Senior Counsel for fourth suspect Upul Jaysuriya, quizzed the authenticity of the detention order.
Allegedly, the President’s signature for the detention order had been stamped by an impersonator.
Defense counsel maintained that it was evident the real signature of the President was not included in the any of the legal documents.
The CID alleged that the suspects had obtained it, through the Internet Payment Gateway (IPG) facility in 2011.
CID also noted that two Non-Government Organizations (NGOs) had been receiving large sums as donations for one year.
Further investigations had revealed that the two accounts were those of Sahana Foundation and Woman and Children Development Foundation.
These transactions were made by foreign credit cardholders.
However, only after the credit cardholders had complained, the fraud had come to light.
Following which FIA Card Services, a representative the Bank of America in USA, issued a notice to the Sri Lanka bank.
It was found that the transactions had taken place using fake credit cards.
The CID suspects that a massive amount has been remitted to the LTTE through these transactions.
14 suspects had been charged under the Public Property Act, Prevention of Money Laundering Act, and the Prevention of Terrorism (Temporary Provision) Act.
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