Lawyers urge AG to direct police to conduct full investigation in Dollar remittance case

• Police allegation that ‘undervalued goods’ in the foreign currency transfer case had been cleared by Customs must be fully investigated, Counsel for suspect write to the Attorney General
• Asserts advance payments are lawful and police cannot make allegations of money laundering without complete investigation on the source of funds and how the ‘undervalued goods’ got Customs clearance
• Lawyers ask why the police are not investigating their own assertion to Court

Counsel appearing for the first suspect in the foreign currency transfer case, have urged the Attorney General to direct the FCID to investigate how police alleged, that goods, for which funds had been remitted by banks, had not been imported into Sri Lanka, in the context of the FCID subsequently reporting to Courts in paragraph 9 of their report dated 20 August 2026, that in fact goods had come to Sri Lanka and cleared by Sri Lanka Customs!

M.M. Zuhair PC with Priyantha Nawana PC for the first suspect Jiffry Mohamed of A Y Investments Impex Ltd., of Bankshall Street, Colombo 11, in their letter to AG have raised the question as to why the police are not investigating extensively, the assertion made to Court by the police themselves in para 9, that goods had been undervalued and cleared by customs at the Sri Lanka end.

“What remains to be done is for the police to do a comprehensive and diligent investigation into the goods received and cleared by the importers. The police must furthermore investigate the complainant in this case, namely the Sri Lanka Customs, as to how the complainant facilitated the importers in clearing the goods, which the police allege were undervalued. They must also investigate whether the goods were cleared by Customs by accepting ‘undervaluing’ and accepting the reduced Customs duty, Value Added Tax (VAT) and other taxes such as Social Security Contribution Levy (SSCL) and whether the Customs deprived the Inland Revenue of its legitimate dues that should have eventually benefitted the country and its citizens, the letter to the AG has pointed out.

“The Special Import Licence and Payment Regulations No 1 of 2011” made under the Import and Exports (Control) Act No 1 of 1969 facilitated the procedure for Advance Payments, enabling the licenced banks to make telegraphic transfers to overseas exporters in due compliance with the said Regulations. We submit that no offence or irregularity was committed by anyone facilitating the transfer of funds overseas to foreign companies, which have exported the goods direct to the importers who paid for the goods.

“It is submitted that all transactions were done through licenced commercial banks, all of which, are subject to the strict regulation, superintendence and control by the Central Bank of Sri Lanka where due diligence had always been exercised, as commercial banks were obliged to do under the Special Import and Payment Regulations enacted in 2011.

“Police could not have come to a definitive accusation against anyone without any investigation on the source and the legitimacy of the multiple advance payments, which are lawful under the 2011 Advance Payment Regulations.

“Police have not conducted any meaningful investigation whatsoever either through due process or based on the documents available in the banks:

(a) in respect of the source of the monies received and/or deposited into the suspect’s above-named company or his 34 associate companies from the importers’ brokers, whose details have been furnished by our client to the investigators, or

(b) in respect of the overseas exporters who received the funds transmitted through approved Sri Lankan banks after exercising due diligence conducted by each of the 13 Sri Lankan approved banks, including State Banks.

“Without such vital investigations (A) of the importers who deposited such large sums of money as advance payments in accordance with the Advance Payment Regulation No 1 of 2011 as well as (B) of the goods exported to Sri Lanka in terms of the said 2011 regulations by the overseas exporters, the allegation against the suspect and his associate companies of money laundering is absolutely untenable and unacceptable,” Counsel for the suspect have said.

The first suspect’s lawyers have requested the AG to advise and guide the police to do a “just, fair and complete investigation” and that the suspect, who is in remand for the third month, could do better to assist the police in the investigation if he is enlarged on bail.