FIA intensifies operation against hawala businesses

The commercial banking circle of the Federal Investigation Agency (FIA) Sindh raided hideouts of hawala and hundi operators in several localities in Karachi.

A spokesman for the FIA Sindh said that in continuation of campaign against illegal businesses of hawala and hundi dealers, the FIA Commercial Banks’ Circle (CBC) conducted a raid at the office of a hawala operator in the Kharadar area.

Two suspects, Saad and Muhammad Asif, were arrested during the raid. A total of Rs9.2 million cash, five mobile phones having incriminating evidence, three laptops having the ledger of illegal transactions of hawala and hundi, and deposits slips of different banks were found in their possession along with cheque books of 15 different banks, 50 open cheques with signatures and rubber stamps of 10 different companies.

Their mobile phone data showed illegal transactions of millions of rupees of hawala and hundi, said the FIA. Accordingly, an FIR No.10/2020 has been registered at the FIA CBC, Karachi, against the suspects under the Foreign Exchange Regulations Act.

The government recently amended the Foreign Exchange Regulations Act, 1947, increasing the punishment for carrying out illegal business of hawala and hundi from two years to five years, making the offence non-bailable, and waiving off the requirement of complaint by the State Bank of Pakistan for the law enforcement agencies to conduct raids on illegal hawala operators.

The raid is the fifth raid on illegal hawala operators within three days. Such raids are also expected to help the government show to the Financial Action Task Force (FATF) that Pakistan has zero tolerance for the hawala operators and money launderers.

Earlier on Tuesday, a raid was conducted on M/s Asif Brothers, which was allegedly running the business of hawala and hundi in Boulton Market. During the raid, the FIA raiding party seized two mobile phones and bank deposit slips involving an amount of over Rs8 million.

An FIR No 6/2020 was registered by the FIA against Muhammad Ikhlas Younus, son of Muhammad Younus under the Foreign Exchange Regulations Act, 1947. The suspect was also arrested.

Another raid was conducted in Boulton Market, in which a man, Noman Ahmed, was arrested who was allegedly running a business of hawala and hundi. The raiding party seized a mobile phone during the raid containing incriminating material related to telegraphic transfer of currencies from the suspect.

An FIR No 7/2020 was registered against the suspect under the Foreign Exchange Regulations Act, 1947. Ahmed was also earlier arrested by the FIA and was granted bail by a local court. Further investigations are under way.