Rs42.37bn laundered through fake bank accounts

ISLAMABAD: The Federal Investigation Agency (FIA) on Friday revealed that around Rs 42.37 billion was laundered through fake bank accounts and their holders were at present being investigated by the National Accountability Bureau (NAB).

FIA Director General (DG) Bashir Ahmed Memon told the National Assembly's Standing Committee on Interior that in 2015, some sources reported to the agency that a huge amount was illegally transacted through four ‘Benami' (fake) accounts, however, action against their holders could not be initiated due to feeble evidence.

The committee met here with Raja Khurram Shahzad Nawaz in the chair.

Bashir Memon said the FIA restarted investigations again in 2017 and identified 29 fake accounts, including the initial four ones, through which massive money laundering was carried out.

He said in January 2018, the Supreme Court took the suo motu notice of the ‘Benami accounts’ and directed the FIA to form a Joint Investigation Team (JIT) to probe into the massive money laundering.

He said the 70-member JIT, comprising officials of Federal Board of Revenue, State Bank of Pakistan, FIA and other institutions, checked some 11,500 accounts of 424 individuals and 500 various entities, besides analysing 59 Suspicious Transaction Reports (STRs) and 24,500 Cash Transactions Reports (CTRs). The JIT found that money laundering amounting to Rs 42.37 billion was carried out through 29 accounts, he added.

Committee member Syed Agha Rafiullah sought the complete details of the alleged money launderers and inquired about the present status of the anti-money laundering operation.

The FIA chief said the details about the money launderers could not be made public and requested to arrange an in-camera briefing for the purpose. The case was forwarded to NAB which was further investigating it, he added.

He also briefed the committee about the present strength of the agency and said as many as 3,579 staff members were working in the different cadres including investigation and prosecution wings.

Another committee member Marriyum Aurangzeb said there was a dearth of specialized personnel as 87 per cent of FIA's staff comprised officials of Grade 16 and lower grades. She stressed the need for structural reforms in the FIA with hiring of qualified and professional officers.

Highlighting the paucity of manpower in the department, Bashir Memon said the FIA had devised a three-phase plan to overcome the human resource shortage. Over 1,000 officials had been recruited in the first phase and being trained to improve its efficiency, he added.

The FIA DG also suggested to raise the salaries of staff, which would help enhance their performance.