The cousin of an alleged drug trafficker who was acquitted last year yesterday pleaded not guilty to money laundering when large sums were sent from Malta to Panama in 2006.

Eduardo Navas Rios, a 30-year-old Panamanian who lives in Qawra, also denies theft and illegal possession of a firearm in October of that year.

Mr Rios is the cousin of Domingo Navas, who was cleared last year of drug trafficking.

In Mr Rios’ trial by jury, prosecuting lawyer Lara Lanfranco told the court that an estimated €349,500 had been transferred from Malta to Panama, sparking an investigation.

She said that a woman named Simone Sciberras, who later turned out to be Mr Rios’ girlfriend, also became involved after she had €65,240 deposited into her bank account without any credible story as to how she came across such a large sum.

According to Mr Rios, he stole some €50,000 of the money from his cousin Georgie Neville Navas, who is also wanted in connection with the money laundering investigations. Mr Rios told the police that the money came from highly illegal activities. In a search on his home, ammunition was found for which he had no licence.

The trial continues.