Former UDA leader Jim Gray has been remanded in custody after appearing in court charged with possessing and concealing criminal property.
Former UDA leader Jim Gray
Gray, 47, had a 10,000 euro bankers draft and more than £2,700 in cash when he was stopped by police on Thursday, Banbridge Magistrate's court heard.
Gray said he could account for his possessions. Defence said the money came from the sale of two pubs.
The police have begun a full money laundering investigation.
The court heard that Gray, who was stood down from the UDA leadership in east Belfast last week, did not understand the second charge of concealing criminal property.
Under cross-examination, a detective sergeant said that it was based on police information and a belief that judging by the defendant's lifestyle he had "unjustifiable earnings".
That was disputed by his solicitor who said that the money came from the sale of two pubs.
Gray, from Knockwood Park, was described in court as a "high profile person in the loyalist community".
A detective said he believed he had been intending to leave the country.
Gray was remanded in custody to appear in court again on Thursday.
However, on Monday police are expected to apply for a court order to freeze his assets as part of a money laundering investigation.