Another huge money laundering scam worth $2.5 billion unearthed in Pakistan
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The Federal Board of Revenue (FBR) has confirmed an over-invoicing of Rs. 70 billion disguised as the import of solar panels. During a briefing to the Senate Standing Committee on Finance, FBR officials revealed proven money laundering in this case.
They disclosed that 63 importers were implicated, leading to the registration of a First Information Report against two major importers under anti-money laundering laws. The officials noted that funds were routed abroad through five commercial banks and, in accordance with anti-money laundering and terror financing laws, emphasized the possibility of repatriating laundered money to Pakistan due to the UAE's agreement.
State Bank of Pakistan (SBP) officials informed the committee about actions taken against bank officials involved in the scam. Senator Musadik Malik expressed skepticism, suggesting that the actual money laundering could amount to $2.5 billion rather than the reported Rs. 70 billion. The committee urged the FBR to submit a detailed report on actions against implicated government and bank officials, with FBR officials stating their submission of a request to the Federal Investigation Agency (FIA) to include certain individuals in the scam on the exit control list (ECL).
Notably, an audit by the Directorate of Post Clearance Audit Customs South uncovered the over-invoicing at the import level, involving 63 importers who filed 6,232 goods declarations, importing solar panels at significantly inflated prices. Suspicions lingered about a substantial portion of funds being illegally transferred out of the country.
