Money laundering scam: Customs to engage UAE’s FIU to trace illicit fund transfers

Updated 08 Oct, 2023

KARACHI: Pakistan Customs is going to engage the UAE’s Financial Intelligence Unit (FIU) to trace billions of rupees of funds illegally transferred to Dubai for money laundering.

According to the details, Directorate of Post Clearance Audit (PCA) South, Karachi has detected the biggest money laundering scam of 2023 under solar panel imports, and following the said detection, Pakistan Customs is going to engage FIU to trace billions of rupees funds illegally transferred to Dubai for money laundering.

Meanwhile, the Directorate has lodged six more FIRs against fictitious importers responsible for channeling a staggering Rs 13 billion black money out of the country under the guise of solar panel imports. These individuals concealed their activities behind a network of dummy solar panel importers, exploiting tax-free imports to deceive authorities and launder illicit funds overseas.

Rs69.5bn money laundering unearthed in solar panel imports

During investigations, it was revealed that three of the associated companies were involved in transferring illicit funds worth Rs 5.35 billion to the UAE in exchange for solar panels imported from various Chinese exporters. All payments were suspiciously routed to one Dubai-based company, M/s Ocular General Trading LLC.

Therefore, Pakistan Customs will involve FIU to trace the funds transferred to M/s Ocular General Trading LLC, as part of the bilateral agreement between Pakistan and the UAE to combat money laundering and terrorism financing, sources said.

Sources further said that the Federal Board of Revenue (FBR) is actively investigating possible collusion between banks and depositors in this money laundering scheme, leaving no stone unturned in their quest for justice.

The FBR’s unwavering commitment to eradicating fraudulent activities is evident in the dedicated efforts of its teams, led by DG PCA Chaudhry Zulfiqar Ali and Director PCA South, Sheeraz Ahmed. With special teams mobilized and investigations intensifying, the FBR remains determined to hold all culprits accountable. Member Customs FBR, Zeba Azhar Hayee, and her team are resolute in safeguarding Pakistan’s foreign exchange reserves, protecting the integrity of the financial system, and sending a powerful message to potential wrongdoers.

Official sources further said that out of 687 Goods Declarations (GDs) filed by these dummy importers, over-invoicing amounted to a whopping Rs. 3 billion in 443 GDs. These six suspected importers managed to illicitly transfer an astonishing Rs 13 billion out of Pakistan against solar panel imports, despite their combined legitimate financial worth, as declared in income tax returns, being a mere Rs 66 million.

This evidence strongly suggests that these companies operated as fictitious entities, utilizing illicit funds far beyond their declared financial capacity.

Among the accused, three companies, namely M/s SH Traders, M/s Sehar International, and M/s Delta Trading Company, were found to be fake or non-existent. The remaining three, M/s Smart Impex, M/s Ehsan Importer and Exporter, and M/s Asadullah Enterprises were shockingly discovered to be associated companies, all housed within the same shop/building in the heart of Madina Tower, Quetta.

Copyright Business Recorder, 2023

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