Significance of Altaf Khanani’s arrest

Altaf Khanani’s arrest in the United Stated coincided with the passage of Anti-Money Laundering Act, 2015 passed by the Senate of Pakistan but his investigation in Washington could put some pressure here as he was once arrested in Karachi in 2009 but fled to Dubai soon after his acquittal by

By Mazhar Abbas
November 16, 2015
Altaf Khanani’s arrest in the United Stated coincided with the passage of Anti-Money Laundering Act, 2015 passed by the Senate of Pakistan but his investigation in Washington could put some pressure here as he was once arrested in Karachi in 2009 but fled to Dubai soon after his acquittal by a banking court while the state appeal has been pending for the past six years, sources revealed.
Khanani’s re-arrest can take a new direction if the US authorities contacted Pakistan’s Federal Investigation Agency in view of fresh investigation into “money laundering,” involving transfer of huge amount of key underworld figures as well as the outlawed networks.
In 2009, the authorities did not pursue much a case in which he was allegedly involved in the transaction of huge money to Afghanistan.Now, it would be interesting to watch how Khanani’s network was operating world over to transfer money linked with terror groups and wanted individuals. Was he aware of the persons involved in getting their money transferred?
Except for the appeal pending with the Sindh High Court against his acquittal, there is no fresh inquiry against him, as he had reportedly shifted his business to Dubai. His arrest in the US also came as a result of information-sharing between the US and UAE authorities.
A senior FIA official told this correspondent that the US authorities had not yet contacted them about his past criminal record, but they were ready to share the information, if asked.
Khanani’s network in the past was unearthed by the PPP government and illegal transactions of billions of dollars were found.
Although he was reportedly arrested in September this year, the US authorities not only confirmed his arrest, but also disclosed that he was allegedly involved in transferring money of world’s most wanted suspects.
Investigation against Khanani and his network in Pakistan was practically closed after his acquittal though the

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government had filed an appeal that has been pending for the past five years.
His acquittal surprised many and though the then government had filed an appeal with the Sindh High Court, it did not put his name on the Exit Control List.
Sources said Khanani shifted his network to Dubai and despite that an appeal was pending against him the state never sought his extradition.
His arrest came at a time when the Pakistani security and intelligence agencies have expanded operation against “terror financing” particularly in Karachi, where evidences were collected how terror networks like Al-Qaeda and Tehreek-e-Taliban and Lyari Gang War were allegedly involved in this business.
The Sindh Rangers and FIA have already arrested some of key suspects while others managed to escape. Billions of rupees have been illegally transferred to other countries.
The police have also found evidence how in some cases of kidnapping “ransom money” was paid in Dubai while money was also transferred to Afghanistan.
The most alarming is the nexus found between terror networks and some politicians and investigations in this regard are now in the final stage.
Pakistan has taken some strict measures to check money laundering and the most significant was to put “Hawala and Hundi,” — the most common means to transfer money — in the category of money laundering.
The Senate of Pakistan passed Anti-Money Laundering Act, 2015 under which some more restrictions have been imposed.
Pakistan might face pressure, as Khanani’s investigation is likely to expand in view of his past inquiries in Pakistan. Thus, there is every possibility that the American investigators may seek FIA’s support which had arrested him in 2009.
Khanani’s arrest can lead to few more arrests and Americans can seek the support of Pakistani authorities in the coming weeks.
When he was arrested in Pakistan, a number of people linked with his network were also arrested and evidence of transactions was also allegedly found with the names of people.
“His arrest is very significant and the US can bring pressure on Pakistan if they have collected evidence of transfer of money of outlawed groups and wanted suspects,” former Interior Minister Rehman Malik, told this reporter.
The FIA had found his illegal transaction business and how his chain was involved in transfer of money from different cities of Pakistan to different countries, he added.
Malik disclosed that Altaf Khanani, the main character in this black business — had established his own separate network of “Hawala and Hundi” and they had unearthed his network in Karachi, Peshawar and Lahore.
“He ran a parallel Hawala system, which was different from others. It was a computer-based system,” he added.
US authorities had found how he and his company used to transfer money of Taliban, Al-Qaeda and other terror networks from one country to other including Afghanistan.
In the past there have also been reports of Khanani links with certain prominent politicians, but he was never investigated in this regard.
“Hawala and Hundi” were used particularly after 9/11 when former President General (R) Pervez Musharraf’s government imposed ban on over one dozen organisations and froze their accounts.
The accounts of many “charity organisations” were also frozen after reports that they were providing a “cover-up” to some terror networks.
Pakistan has made significant progress in the war against terrorism, particularly after the launch of operation “Zarb-e-Azb.”
One of the major decisions which the Army Chief General Raheel Sharif had taken in the Apex Committee was to check “terror financing”.
The arrest of some Al-Qaeda’s suspects linked with finance had provided details to investigators about the recovery of money and its transaction.
It would be interesting to watch if Khanani’s arrest would lead to the arrest of few more people linked with his network. The investigation will have a huge impact on Pakistan’s “money changers’” circles.Following this investigation, some outlawed Jihadi networks can face more pressure and restrictions.
The writer is the senior columnist and analyst of Geo, The News and Jang.

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