Rs16.2b money laundering scam unearthed

These entities facilitated illegal transfer of black money abroad by falsely documenting imports

KARACHI:

The Directorate of Post Clearance Audit Customs South Karachi has unearthed one more money laundering scam in the guise of importing solar panels.

A staggering sum of Rs16.2 billion in black money was unlawfully funneled overseas under the pretext of payments for imported solar panels.

This revelation emerged during a post-customs clearance audit of a company, forming part of a rigorous crackdown on organised money laundering.

Sources within the directorate told The Express Tribune that their investigation unveiled that Hamza Enterprises established 11 fictitious companies to perpetrate the foreign payments fraud.

These entities facilitated the illegal transfer of Rs16.2 billion in black money abroad by falsely documenting imports of solar panels, scrap materials, machinery, and assorted items.

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Curiously, all 11 fictitious companies shared the same national tax number, indicating a deliberate misrepresentation. Hamza Enterprises allegedly leveraged Rs16.2 billion in unauthorised capital, a far cry from its legitimate financial capacity as per income tax records.

Suspicions arose surrounding the company's actions, alleging cartel formation and exploitation of the customs' green channel to secure clearance for imported goods. Additionally, by masquerading as a manufacturer, Hamza Enterprise secured tax exemptions totaling Rs22 million. Subsequent to clearing solar panels and other merchandise through customs, the company deleted the relevant customer ID user-a move raising red flags.

As a result of their findings, the Directorate of Post Clearance Audit Customs South has filed a case against clearing agents Moiz Baig and Faraz Ahmed for aiding and abetting the fraudulent activities. In the pursuit of further investigation, Moiz Baig, associated with the clearing agency, has been arrested. A competent court has remanded him to customs detention for a seven-day period.

Published in The Express Tribune, December 29^th, 2023.