Crackdown on money-changers

LAHORE/KARACHI-In a countrywide crackdown against the persons involved in illegal business of foreign currency transfer and Hundi, FIA Crime Wing arrested three dealers including the big fish Javed Khanani allegedly involved in the same business and recovered foreign currency and electronic devices used by him in the business, disclosed an officer of Cyber Crime Wing here on Saturday.

Munaf Kalia, Chief Executive Officer of Khanani and Kalia International (KKI), leading exchange company in Pakistan, has been arrested from Karachi and is being interrogated, for illegal transfer of billions of US dollars abroad, a move taken at a time when the country is facing balance of payment crisis.

An FIA official taking part in the crackdown said that Javed was arrested from Gujranwala and brought to Lahore alongwith his two companions for further interrogation.

'We have registered a case under Foreign Currency Regulation Act 1974 and Electronic Transaction Ordinance (ETO) against the accused', he claimed.

He said that it was only the start as more raids would be conducted in days to come to curb this illegal business which was harmful to country.

He said that accused were involved in sending huge amount of US dollars out of the country causing balance of payment problems in the country.

He was of the view that though it was the job of State Bank of Pakistan to regulate the financial market but it seemed as if the SBP had surrendered before such elements that is why Federal govt was directing FIA to start action against such elements.

'As the powers to deal with such elements had earlier been transferred to NAB and only few days back FIA was given back these powers of Federal Anti-Corruption Act so we are facing problems', he added.

He said that shortly the agency will overcome these problems and deal with these people more effectively.

He further said that people who wanted their relatives abroad to send money through this system would have to face problems in days to come as most of the people involved in this illegal business had gone underground to save their skin.

Meanwhile, the decision to deal with the currency dealers with a heavy hand came at a time when the country had been facing severe economic crisis with plunging foreign exchange reserves and high inflation. The accused allegedly sent 10 billion dollars abroad illegally. The foreign reserves have fallen sharply from 16.5 billion dollars in October 2007 to 6.75 billion dollars this November.

Karachi correspondent adds:

Munaf's other business partners, include Javed Khanani, Saleem, Yousuf Kalia and Anees Rajput were also detained while at least nine NADRA staffers were also arrested on the suspicious of providing duplicate and fake indentity cards to money-changers.

Nine employees of NADRA were taken into custody from different offices such as Keamari, Lyari, Awami Markaz and DHA.

NADRA officials were accused of helping the money-changers involved in the scandal by providing them duplicate identity cards and some other cases as well such as car financing, credit cards and other things.

Meanwhile, offices of Khanani and Kalia situated at I.I. Chundrigar Road and other parts of the country have been sealed and officials of FIA have been deployed there.



APP adds: Director General FIA Tariq Pervez Saturday said the organization has collected solid evidences against some people who were involved in illegal transfer of foreign exchange to other countries.

Talking to a private TV channel in a telephonic interview, he said that four people have so far been taken into custody. Among these two are from Gujranwala, one from Lahore and one belongs to Karachi.

He said the main server computer has also been confiscated from the gang's Gujranwala office, which was used for this illegal business of foreign exchange transfer.

Once retrieved and updated the data of this computer would provide valuable information about the business.

To a question, he said, it would be premature to speak about the size of money that was transferred to other countries by the gang adding the investigation was underway to get the correct figure.

He said that action against this gang was not a sudden step rather the organization was monitoring the activities of certain companies and individuals for some days after the sudden disappearance of dollar form market.

The Interior Advisor had asked the FIA to look into the matter and the organization thus got busy in gathering solid evidence in many cities before conducting raids.

It was on the basis of solid evidence that raid was made on Gujranwala office of the gang, he said, adding there were two counters in the premises " one for normal money exchange business while the other was used for illegal transfer of foreign exchange to other countries.

During the investigation two companies including Khanani and Kalia international and Dunia Exchange were find indulge in this illegal business while the process was underway to hunt the others, he further said.

He said the economy wing of the organization has recently been reactivated by the government and it will keep strict watch on illegal money business transfer business in the country.