Money laundering: FIA arrests three for running hundi business

An FIR has been registered under foreign exchange and anti-money laundering acts

Kashif Farid October 13, 2018

FAISALABAD: The Federal Investigation Agency Faisalabad arrested three forex dealers allegedly involved in running hundi/hawala business, Express News reported.

FIA officials said that on a tip-off, a raid was conducted at a currency exchange in Amin Bazaar, Sargodha. During the course, three forex dealers identified as Muhammad Amjad, Muhammad Azhar and Danish Nadeem were apprehended for their involvement in running illegal hundi/hawala business.

The raiding team also seized huge amount of local and foreign currency, five cellphones, three computers, relevant record and files from the spot.

The FIA Faisalabad has registered FIR No 510/2018 under sections 4, 5, 8, 23 of the Foreign Exchange Regulation Act 1947 and Section ¾ under the Anti-Money Laundering Act 2010.Further investigation was under way.

Earlier, the FIA arrested seven suspects for allegedly running illegal business of hundi in Multan and Dera Ghazi Khan districts.

The suspects were operating in various areas including Syedwala, Choparhatta and Chah Sawarai Wala. The FIA recovered thousands of rupees in foreign and Pakistani banknotes, mobile phones, car, and important documents from them.

According to the Securities and Exchange Commission of Pakistan website, hawala (used interchangeably with hundi) is an alternative system that operates parallel to traditional banking channels.

It is distinguished from other remittance systems via trust and extensive use of connections such as family relationships or regional affiliations. Transfers of money take place based on communications between members of a network of hawaladars.

It works by transferring money without actually moving it, requires no bank accounts and is consummated without leaving a paper trail. This form of money transferring is associated with ethnic groups from Africa and Asia.

Published in The Express Tribune, October 13th, 2018.


Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ

Most Read