FBR arm busts gang involved in money laundering

Customs Intelligence Directorate, an intelligence arm of Federal Board of Revenue (FBR), has busted a gang involved in millions of dollars money laundering and under-invoicing, well-informed sources told Business Recorder. Sources said here on Tuesday that the agency has apprehended culprits involved in gross under-invoicing on import of goods and illegal transfer of huge sums of foreign exchange to Singapore and China and cases are being framed under the provisions of the Customs Act, 1969 and Anti-Money Laundering Act, 2010.
The agency is also investigating aspect of connivance of the customs officers/officials involved in clearance goods on nominal/declared values. In this scam, money laundering of US $3 million has been unearthed. The trail of transfer of US $1.41 million to Singapore and China has been established and evidence of remaining US $1.6 million is being collected. The evasion of duty/taxes to the tune of Rs 100.012 million has been unearthed on total values of goods of Rs 307.346 million. Connivance of the customs officers/officials who had cleared the goods on nominal/declared values is also been investigated.
It is important to mention here that due to personal efforts and supervision of Director General Customs Intelligence and Investigation Shaukat Ali, the FBR's intelligence arm has been able to unearth a number of cases of money laundering. According to details, Karachi regional office of the Directorate General, Intelligence & Investigation - FBR has detected another case of gross under-invoicing in import of goods and illegal transfer of huge sums of foreign exchange to Singapore and China. As per details, M/s Sunder Trading Company, Lahore, now operating as M/s MMYZ, Karachi, imported 33 consignments of surveying equipment from Singapore and China. The same were cleared from MCC, Appraisement (West), MCC, Appraisement (East) and MCC, Preventive (KPAF).
On a tip off, two consignments imported by the same persons under the name of M/s MMYS, Karachi and at MCC, Appraisement (West), Karachi were blocked after having been cleared by the Collectorate's staff and thorough investigation was conducted into the transactions referred to. A raid on the business premises of the importer in Lahore was conducted after obtaining search warrants from the court of competent jurisdiction under section 162 of the Customs Act. 1969 and a lot of incriminating evidence was recovered therefrom. Two persons namely Shaukat Ali Naeem (father) and Faisal Shaukat (son) were also arrested who have since been taken to Karachi regional office after obtaining transit remand of the arrested persons up to 17th March, 2017. Cash of Rs 12.42 million was also recovered during the search, which is suspected to have been kept for payment in connection with illegal transfer to the foreign suppliers. The record seized during the raid has established transfer of US $1.41 million to Singapore and China through Dubai-based third parties - that is money changers. Total amount transferred illegally to Dubai and then to Singapore and China is US $3 million. Evidence in respect of the remaining US $1.6 million (approximately) is being collected. Money to the involved exchange companies had been provided through a Lahore-based money exchange company whose name has been kept secret for the moment.
Outcome of the investigation conducted so far by the Directorate General and the papers/evidence recovered as a result of the raid referred to above has established that and duty/taxes to the tune of Rs 100.012 million had been evaded on the consignments already cleared. Total value, on which duty/taxes had not been paid, works out to Rs 307.346 million. The criminals will be charged not only under the provisions of the Customs Act, 1969 but also the Anti-Money Laundering Act, 2010, sources added.