FIA arrests money exchange firm’s manager, several others over Hawala, Hundi business

The Federal Investigation Agency’s Anti-Corruption Circle (ACC) on Saturday announced the arrest of a money exchange company manager involved in the Hawala and Hundi crime.

Inspector Nasruallah Khan of the FIA Sindh said Director FIA Sindh Aamir Farooqi had ordered his subordinates to lead a crackdown against those involved in Hawala/Hundi transactions. During the process, the ACC received an inquiry from Director Farooqi, and an investigation began.

After receiving information that unscrupulous persons led by Sultan Damani were involved in the illegal business of Hawala and Hundi and the illegal sale and purchase of foreign currencies in violation of the FER Act 1947. A source said incriminating material and evidence could be retrieved from the cellphones of the suspects. Hence, an inquiry No. 36/2021 dated September 30, 2021 was registered for further proceedings.

Since the offence is cognizable and non-bailable vide the Foreign Exchange Regulation (Amendment) Act 2020, the competent authority constituted a raiding party of the Anti-Corruption Circle, Karachi. After making necessary entries at the FIA ACC Karachi, the raiding party rushed to the place, i.e. Shop No. 2, Plot No. 65-C, 11th Commercial Street Phase-II (Extension) Karachi.

Efforts were made to procure independent witnesses in order to fulfil the requirements of Section 103 of the CrPC, but nobody volunteered to become a witness. The raiding party entered the abovementioned premises where branch manager Sultan Damani, son of Noor Ali Damani, cashier Asif Ibrahim of M/s Swiss Exchange Company-B (Pvt) Ltd and other staff members were found available. After due introduction, they were informed about the official purpose of the team, i.e. to search the premises. A search of the premises resulted in the recovery of the following incriminating articles:

$1,700, 1,750 GBP and other foreign currencies (equivalent to is Rs1,057,881) and Pakistani currency (Rs4,304,3901). The cash was recovered from strong room and locker. The total cash was equivalent to Rs5,362,271.

The recovery included handwritten paper having details of foreign currencies and Pakistan currency duly signed by Sultan Damani and cashier Asif Ibrahim. It was made part and parcel of this memo. Several other documents, including one file containing a final transaction report, one yellow file containing the agreement of tenancy, one orange file containing personal documents (tax receipt, USD purchase receipts of Sultan Damani, six bunches of sale and purchase receipts of foreign currencies, one handwritten pad containing entries of illegal purchase of foreign currencies, one brown staff attendance register, and cellphones that contains messages on WhatsApp related to Hawal and Hundi, were also seized.

The abovementioned incriminating articles were taken into possession under the FIA under Search and Memo prepared on spot in the presence of witnesses, including cashier Asif Ibrahim.

When questioned on the spot about the abovementioned articles, Sultan Damani could not give any plausible reply and disclosed that the foreign and Pakistan currencies recovered from his room in the black bag were not declared capital of the exchange company and was for illegal sale and purchase of foreign currencies and hawala and hundi in his personal capacity.

Accordingly, Damani and four staff members were brought to this ACC Police Station for further interrogation along with the incriminating articles.

During the interrogation, Damani disclosed that he was involved in the business of Hawala and Hundi and illegal sale of currencies for some importers and also used to send and deposits money abroad through the illegal channel of various individuals whose numbers and record were present in his cell phones. He also disclosed that he had held around $180,000 at his residence due to devaluation of the Pakistani rupee to get some undue gains.

Accordingly, the undersigned along with Damani, and officials of the FIA and a female police officer, Anti-Corruption Circle, Karachi, left the police station after making a necessary entry. After reaching his residence, situated in Block 5, Clifton, the raiding party recovered $180,000 and 3,000 GB pounds from a drawer under the wardrobe and cupboard in his bedroom. He said he had kept the money for undue gains.

The seized money was mentioned in the search and seizure memo prepared on the spot in the presence of witnesses. The raiding party brought Damani back to the police station vide a DSD entry for further interrogation.

The suspect further disclosed that he was in contact with other hawala agents in Karachi and Dubai for sending payments. In Karachi, he said, he was in contact with one Umair whose number was saved in his cell phone as Syed Umair Saify. In Dubai, he said, he was in contact with Murad whose number was saved in his cell phone as mamoo. He said he was also in contact with Sajjad whose number was saved as Patrick Evans.

He also sent funds of importers, namely Danish Mateen, Hyder Tejani, Aneeel, Hameed C/o Huda, Sarfaraz etc. He used to illegally purchase foreign currencies from various exchange companies without receipts, whose numbers and messages and correspondences were also saved in his cell phones. He also illegally sold foreign currencies to Attaullah and many others as per their demand and contact numbers of various other individuals are present in his cell phones. An FIR have been registered against Damani and he was formerly arrested.