FBR wing pursuing biggest money laundering case

The Directorate General of Intelligence and Investigation Inland Revenue (IR) is strongly pursuing biggest money laundering case against two businessmen of electronics, etc, involving $94 million, which resulted in bailable arrest warrants of both accused by Special Judge Customs, Taxation & Anti-Smuggling Karachi. Sources told Business Recorder here on Friday that the DG I&I IR has unearthed 3-4 big money laundering cases in different parts of the country involving huge transactions.
The agency has been recently notified as designated agency for detection of money laundering cases. Following detection of this mega money laundering case involving $94million transaction, the agency has is in the process of finalisation of 3-4 other big cases of money laundering. The case is first ever biggest money laundering transaction detected by Directorate General of Intelligence and Investigation IR.
As a result of efforts of the agency, Special Judge Customs, Taxation & Anti-Smuggling Karachi has issued bailable arrest warrants of both companies. In case, both the businessmen failed to appear before the court in the next date of hearing, then non- bailable arrest warrants would be issued under Anti-Money Laundering Act.
Presently, both the accused businessmen are out of the country, sources said. Details of the case revealed that the agency is investigating a money laundering case in respect of two businessmen under section 8(2) of Anti Money Laundering Act, 2010 (the AML Act 2010), on the grounds that the suspects have concealed/manipulated the real proceeds of a sale agreement which was made between them and a subsidiary of Turkish Company. According to the sale agreements the said subsidiary company has acquired two companies from two Pakistani businessmen and another company from an offshore company located in British Virgin Island for total amount of US $242 million. Accordingly, the said two accused businessmen received US $148 million against the sales proceeds of two companies and remaining amount of US $94 million was transferred to the foreign company on account of sale of a Pakistani company.
The reasonable documentary evidences are available to believe that the suspects have concealed/ manipulated the real proceeds of sale agreement which was made between them and Subsidiary of Turkish Company. Accordingly, both businessmen received US $148 million against the sales proceeds of two companies and remaining amount of US $94 million was transferred to the foreign company on account of sale of another Pakistani company. It is, however, observed that initially the said Pakistani electronics company was also owned by both businessmen who sold the company to foreign company in 2013 for US $3.3 million only. It appears suspicious that how a company which was sold for only $3.3 million can fetch US $94 million in three years period. It is suspected that the beneficial owner of the foreign company is Pakistani businessman and related money has been received by him in British virgin island but then he when asked by State Bank of Pakistan (SBP) to explain all the aspects of the transaction, he could not give any satisfactory response. The bank had frozen bank accounts of for 15 days. Moreover, other accounts of suspects are reportedly being maintained at a bank.
One businessman is chief executive of a company and second businessman as Director of company and in respect of accounts maintained by them, numerous suspected transactions reports (STR)/ currency transactions report (CTR) were reported on by different exchange companies and banks which were found in financial monitoring unit (FMU)'s database (420 CTRs) which seems highly unusual. During analysis suspicious activities have been noticed.