FIA busts network involved in illegal money transfer

Dealers sent abroad Rs25b through banned hundi, hawala system.

LAHORE:

The Federal Investigation Agency (FIA), during an examination of record, has uncovered a network of dealers at the Lahore Stock Exchange that has allegedly transferred about Rs25 billion worth of local and foreign currency abroad through the illegal hundi and hawala system, The Express Tribune has learnt.

Most of the amount was connected to the bookies and a major chunk of it was sent to Dubai through the banned system, sources familiar with the investigation told The Express Tribune.

Some small hundi/hawala dealers were from Lahore and some others were from Karachi and other cities, who were part of this major network. In a period of just one year, they sent Rs24.75 billion overseas through illegal means.

The FIA has registered a case against Syed Alamdar Hussain, Nadeem Khawar, Sami Aslam and Nayyar Sheikh under Sections 4(1), 8(2), 23(1) of the Foreign Exchange Regulation Act 1947.

According to the FIR, the FIA received credible information that an organised gang was busy in running the illegal business of hundi and hawala on the ground floor of the Lahore Stock Exchange without getting a licence from the State Bank of Pakistan (SBP).

Following approval of FIA Punjab Director Dr Usman Anwar, a team of the FIA Corporate Crime Circle raided the business premises.

They arrested three accused identified as Syed Alamdar Hussain, Nadeem Khawar and Sami Aslam and confiscated prize bonds worth Rs89.834 million, Rs17.652 million in cash, 49,905 US dollars, 5,545 pound sterling, 40 million Iraqi dinar, euros, Indian rupee, Iranian rial and 49 biscuits of gold each weighing 10 tolas with total weight of 490 tolas worth Rs4.8 million.

They also found receipts relating to hundi/hawala, two cheque books, five CPUs, two LCDs, four mobile phones, one Kalashnikov and four pump action guns along with bullets and cartridges.

The record seized from the office showed that Rs24.75 billion had been transferred abroad through hundi/hawala and the receipts, which were on plain papers, only mentioned the name of the sender and receiver and the amount.

The computer systems and cellphones taken into custody were sent to the FIA’s National Response Centre for Cyber Crime for forensic and technical analysis.

The owner of the business, Nayyar Sheikh, could not give any justification for the transfer of such a huge amount abroad as well as about his business of foreign currency.

According to the FIA, the owner has also failed to provide an SBP licence allowing foreign currency business.

FIA Punjab Director Dr Usman Anwar said an investigation was under way and after completing work a challan would be submitted in the court.

Published in The Express Tribune, May 18^th, 2014.

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