FBR detects money laundering scam

RECORDER REPORT

ISLAMABAD: Directorate of Customs Intelligence and Investigation has unearthed a case of money laundering to the tune of $2.1 million involving an importer, who simultaneously committed offences of fiscal fraud, forgery, under-invoicing, tax evasion and money laundering, causing huge loss to the national kitty.

Director General Customs Intelligence and Investigation, Shaukat Ali informed media here on Friday that some of the exchange companies were involved in remitting the amount aboard. The initial estimated value of tax evasion comes to Rs200 million and value of seized goods totalled at Rs300 million during 2010-2106. The accused persons in a systematic and pre-planned manner had got clearances of imported goods by suppressing the factual values of the same and had inflicted colossal loss of revenue to the national exchequer. The FIR under sections 15 and 32A (a) and (2) of the Customs Act, 1969 punishable under clauses (14A) and (90) of sub section (1) of section 156 of the Customs Act, 1969 has been registered against the organised gang. The record of import and accounts record, original invasion, blank airway bills and two CPUs including hard disc drive were also seized for using as evidence. The names of the accused are proposed to be place on ECL and the raiding squads are making raids to apprehend them. The further progress shall be communicated to the FBR in the course.

Details of the case revealed that a piece of information was received through reliable sources that the importer of namely M/s Marush International, Model Town, Lahore, with its sub-office at Karachi is engaged in the imports of poultry vaccines, medicines, nutrients, premixes, etc, and evading customs duty and taxes by adopting fraudulent methods.

The importer was involved in massive mis-declaration of value by suppressing the actual transactional value of the imported goods by way of submission of fake import invoices and other documents before customs for clandestine clearances, the DG said.

The importer was also involved in illegal import of poultry medicines/ vaccines by presenting fake/ irrelevant provisional authorisations of the Drug Regulatory Authority Pakistan.

The importer was also involved in transfer of foreign exchange of the suppressed values to the suppliers abroad through illegal means and the total amount comes to US $2,149,729 (approximately). The major names of money exchangers through which hundi/ hawala payments were made are Al Nahdi Exchange, Multinent Trust Exchange, Dubai and Malik Exchange and Universal Exchange Centre.

The informer also provided copies of both proforma and commercial invoices which showed factual values of the goods imported by the involved firm. In order to verify the veracity of the information, the import record of the above firm relating to years 2011 to 2017 was retrieved from Pakistan Revenue Automation Limited (PRAL) which was cross-checked with the above documentary evidences. It was revealed that the above firm has been mis-declaring actual value of the imported goods at a massive scale since years. It was further revealed that custom clearance of all the import consignments was made through M/s Aun Associates Clearing Agency Karachi, which is the office of the importer himself. Initially, 11 goods declarations were scrutinised which revealed that factual values were much higher than the values declared in the goods declarations and the inflicted loss of duty and taxes comes around Rs34.5 million. The scrutiny of rest of the import record is under way which is likely to unearth further fraudulent evasion of duty/ taxes.

The DG said that the search warrants were obtained from the concerned court of judicial magistrate, Model Town, Lahore, for search of the warehouse and head office of the said import firm situated at Old Bone Factory, near Kot Lakhpat railway station, Lahore, and 123-K, Model Town, Lahore, respectively. After observing all legal formalities and in the presence of local police, search of both the abovementioned premises was conducted.

Similar exercise was also undertaken at Karachi office of the import firm situated at 6-Noor Estate Building, Shahrah-e-Faisal, Karachi, and consignment wise import documents, fake stamps of foreign suppliers and fake stamps of a bank, blank letter head pads of foreign suppliers, etc, were also recovered for using as an evidence. Accused Muhammad Zia Uddin son of Muhammad Yousaf Uddin, import manager of M/s Marush International Lahore was also arrested.

Taking this into account, it is evident that accused persons in a systematic and pre-planned manner, had got clearances of imported goods by suppressing the factual values of the same and had inflicted colossal loss of revenue to the national exchequer.