Sri Lanka, July 10 -- Industry and Entrepreneurship Development Minister Sunil Handunnetti told Parliament yesterday (9) that billions of US dollars lost to 'phantom import' scams and foreign exchange (forex) rackets will be blocked under the newly amended Prevention of Money Laundering (Amendment) Bill.

"The updated legislation reclassifies forex violations as predicate offences and introduces strict international co-operation to freeze funds illegally diverted to foreign accounts. "Investigations uncovered a massive racket where 105 local companies utilised fraudulent telegraphic transfers (TT) for fake imports, illegally siphoning over US$ 85 million out of the country.

"A separate investigation flagged illegal transfers exceeding Rs...