Customs detect Rs.1 b forex banking fraud

The Customs has uncovered a huge Rs.1 billion exchange fraud at a private bank in Pettah yesterday, the Daily Mirror online reported. It said two suspects were arrested on charges of having produced falsified documents and fake identities and registering a non existing company.

Customs Deputy Director Athula Lankadeva said the Customs was told that the company was registered but investigations had revealed that it did not exist.  The bank manager and a businessman were arrested by Customs officers.

“We don’t know what they tried to import. We are on the lookout for the mastermind behind the fraud but we believe they might have attempted to import sophisticated items illegally,” he said.

 “This is probably the largest foreign exchange fraud that was detected by the customs. We were told by the suspects that a ship carrying textiles is heading to the port but we have not received any information of such a ship arriving at the port at any time soon”, Lankadeva said.

 “We raided the bank and we believe the suspects might have been doing this for the past six to eight months with associates who are yet to be arrested,” he said.

Lankadeva said the two suspects were produced at the Hulftsdrop Magistrate’s Court and remanded.