Under-invoicing related money laundering: Cases of POP Global Distribution and Technosol referred to Customs I&I

KARACHI: The Directorate of Post Clearance Audit (PCA) has forwarded around 40 more cases to Customs Intelligence and Investigation (I&I) of under-invoicing related money-laundering and fiscal fraud.

PCA initiated scrutiny and analysis of last five year data comprising FIRs lodged for under-invoicing, mis-declaration and over-invoicing, Order-in-Originals and Contravention Reports served on importers and traders. The cases of under-invoicing, mis-declaration and over-invoicing would now be processed under Anti-Money Laundering Act also.

Ministry of Finance has reportedly assigned Directorate of Post Clearance Audit (PCA) and its high profile officers including Director PCA Ashraf Ali Additional Director Farrukh Sajjad, Deputy Director Shoaib Raza to detect under/over invoicing and mis-declaration, and forward these cases to Customs Intelligence and Investigation for proceedings under money laundering law.

The PCA has found M/s Technosol Pvt Ltd and M/s POP Global Distribution involved in revenue evasion through under-invoicing on the imports of computer products and IT equipment. These two companies evaded a total of Rs90.768 million through mis-declaration and under-invoicing.

In cases of mis-declaration and under-invoicing, only a part payment of the imported goods is made through formal channel i.e. LC and these amounts are mentioned in the I-Form, while the rest of the payments are made through informal channels. Therefore, the authorities have decided to pursue these mis-declaration and under-invoicing cases under money laundering law.

An official said smuggling and money laundering were the biggest challenges facing Pakistan and a large number of companies including multi-nationals were involved in this dirty business. Such activities damage not only the financial institutions directly, but also country’s productivity in its various economic sectors, such as real sector, international trade sector and capital flows, among others; indirectly.

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