Estimated Rs236 billion illegally transferred to 37 countries in the past five years; Pakistan to face financial plenty if it fails to improve conviction rate
ISLAMABAD: Pakistan’s top agency, responsible for curbing financial crimes, witnessed lowest ever conviction rate (six percent) in cases of money laundering and ‘hawala and hundi’ in past three years, an alarming sign which could lead the country to face 'financial penalties' from international organisations in coming years—2017-18.
As conviction rate dips to 7%, the Federal Investigation Agency (FIA) struggles to meet standards set by international organisations, the Financial Action Task Force (FATF) in particular, an international body working under UN umbrella for curbing money laundering and terror financing.
“If we fail to get better conviction rate (over 70%) in money laundering cases—also if country does not upgrade its anti-money laundering laws by end of 2017—we will be facing various financial penalties sooner than later,” a senior official of FIA revealed to Geo News (ASKKS) and The News. "Present laws are stumbling block in our ways to get more accused convicted in such cases. We repeatedly requested MoI for amending AML Act 2010 but no responded yet," he revealed seeking anonymity.
The FIA teams overseeing financial crimes have registered 870 cases of money laundering and ‘hawala and hundi’ against these individuals and companies under the Anti Money Laundering,
Act 2010 during this period, showed the documents exclusively made available with Geo News. Only 103 of 1, 550 arrested accused were convicted while 33 accused were acquitted. This situation pushed Pakistan to join the club of Turkey, Syria, Indonesia, Yemen, Myanmar, Tanzania, Kenya, Ethiopia and Vietnam with strategic anti money laundering and terror financing deficiencies, revealed the official.
Only one (1) of 256 filed key cases of money laundering was decided by the courts in last three years, he revealed. FIA teams seized estimated Rs4 billion from these individuals where investigators filed over 870 cases of money laundering cases against these individuals and companies during this period.
Another FIA official engaged to collect such data claimed that these individuals and companies illegally transferred estimated Rs234 billion through money changers, ‘hawala and hundi’ and other illegal channels to 37 countries in last five years.
These countries included the United States, United Arab Emirates, United Kingdom, Malaysia, Iran, Afghanistan, Thailand and long list goes on, revealed the officials who are dealing with financial crimes. “We have capacity of checking out 22% people involved in money laundering and other financial crimes. The rest (78%) of such financial crimes go unchecked in Pakistan,” one of these officials of FIA said, seeking anonymity.
Director General FIA Muhammad Amlesh and Spokesperson for MoI did not give their ‘point of view’ on this issue despite repeated attempts made by this correspondent.
Documents continued to reveal that FIA team registered 256 cases of money laundering in last three years. FIA teams arrested some 491 of total 664 accused who were involved in crimes of money laundering in last three years. The FIA special teams, under the National Action Plan, also arrested 848 accused involved in money laundering, ‘hawal and hundi’ and illegal money changing during this period. The teams under NAP also seized Rs851 million since January 2015. FIA Sindh Zone seized Rs2.3 billion from 176 individuals and companies during this period. The FIA team filed 34 cases and arrested 176 people involved in money laundering. Estimated Rs155 million were seized from 184 accused in Punjab. Around 128 cases were filed by FIA teams in different zones namely Lahore, Multan and Faisalabad during this period.
FIA teams seized Rs327 million from 155 individuals and companies in Khyber-Pakhtunkhwa and also filed 86 cases in Peshawar Zone only. The team also confiscated Rs31 million in Islamabad Zone where 18 accused were involved in such crimes. Not a single case registered in Balochistan where FIA officials claimed that believe crimes like money laundering, ‘hawala’ and ‘hundi’ were on the rise even bigger than they think. FIA officials further revealed some key individuals and companies’ names who were allegedly involved in billions of rupees money laundering cases.
Estimated Rs54 million were recovered from Ayan Ali, the famous super model at Islamabad Airport last year when she was on her way to Dubai. Estimated 1300 tolas gold worth Rs65 million was confiscated with Rs34 million cash at Lahore Airport from Ejaz Baig in May 2015.
Accused Farhan Junejo involved in laundering estimated Rs250 million while doing embezzlement in TDAP funds where many other accused were also involved in laundering money in 2013. Mr Junejo was involved in money laundering through which he bought properties in London. FIR No. 20/2013 was registered against him and also moved for issuance of red warrants against him. His property was also seized. The Axact Company’s CEO was accused of having illegally transferred Rs170.17 million to a Dubai-based firm, Chanda Exchange Company, in April 2014.
The FIA team got registered a First-Information Report (FIR) 51/15 under Foreign Exchange Regulation Act 1947 in Karachi. The case is under investigation. Obaid Khanani, Huzaifa Khanani, Javed Khanani and Atif Polani were involved in money laundering cases; even the US blacklisted their companies. Commenting on this situation, Ex DG FIA Zafarullah Khan called for forming a special cell at MoI to curb money laundering issues and such legislation is no longer toothless, amending the existing laws. “We will have to show the world that our laws really come hard on those who were involved in financial crimes at all cost," the former DG said.