Rs90m money laundering scam uncovered

Legal action initiated against 12 importers, six clearing agents

KARACHI:

The Customs Intelligence Karachi has uncovered a money laundering scam involving a whopping Rs90 million. Legal action has been initiated against 12 importers and six clearing agents for their alleged involvement in the scam.

As per information shared with The Express Tribune, Engineer Habib Ahmed, Director Customs Intelligence, was tipped off that several importers were exploiting Chapter 99 of the Pakistan Customs Tariff (PCT) to evade duties, resulting in losses to the national kitty exceeding Rs90 million. Acting on this information, Ahmed formed a team that conducted a comprehensive examination of consignments cleared under Chapter 99.

Twelve distinct importers, including M/s Bahawalpur Steel Mills, M/s Basheer Son Fancy Light, M/s SS Associates, M/s Supreme Oil Services, M/s Union Traders, M/s Ahmed Madax, M/s Haz International, M/s Dawood International, M/s Vertex Medical, M/s Musa Trading, were identified. Additionally, six clearing agents from M/s Moss Steel Furnace, M/s C&F Solution, M/s Zulfi International, M/s Maniya Enterprises, M/s Prime Business Corporation, M/s Quality Customs Brokers, M/s Vistampics, and M/s Tauheed Brothers were implicated.

Read Money laundering scam suspect tries to evade arrest

Collectively, these entities obtained Customs clearance for 20 consignments under Chapter 99 of the PCT. Allegedly, payments were made through the illegal Hawala-Hundi money transfer channels against the consignments. The Electronic Import Form (EIF) for the 20 identified Goods Declarations (GDs) was not submitted to the Customs for clearance, and foreign exchange was sent through illegal channels for payment.

The Directorate of Customs Intelligence Karachi served notices to the importers under Section 26 of the Customs Act, 1969, seeking information on payments made through legal channels. However, the importers failed to provide any evidence of remittance of foreign exchange in compliance with payment regulations.

Documents revealed that the 12 importers had transferred $336,737 to foreign countries through illicit means. These entities were involved in the clearance of consignments for NGOs, hospitals, and other charities under Chapter 99, which are typically exempt from duty and taxes.

However, the implicated importers, through collusion with clearing agents, systematically avoided the submission of electronic import forms, resulting in the clearance of 20 consignments and causing significant financial losses to the national exchequer.

Published in The Express Tribune, February 23^rd, 2024.