KARACHI: Customs Intelligence and Investigation Karachi (I&I Karachi) has lodged an FIR against Farhan Raiq of M/s S.N International for fiscal fraud by electronically filing false and forged import documents and misusing the EIF to declare significantly lower values than those at which goods were sold for export to Pakistan and then remitting the foreign exchange acquired from higher sale proceeds through illegal channels by way of money laundering.
On the instructions of Director General I&I Faiz Ahmed, FIR is lodged under Anti-Money Laundering Act along with other laws. Faiz Ahmed is the first DG of I&I who integrated AML provisions in the Customs and FIRs are lodged under AML Act.
Information was received through Director I&I Karachi Engineer Habib to Additional Director Afzaal Wattoo that M/s. S.N International has incorrectly stated the values, by way of under-invoicing, of imported consignments of Solar Panels at Collectorates of Customs Appraisement, East, West and SAPT.
Scrutiny conducted under the supervision of Deputy Director Abeer Javed revealed that M/s S.N. International had repeatedly used three different EIFs to clear 35 GDs of Solar Pannels.
Customs Intelligence and Investigation Karachi has already exposed a major smuggling racket involving the import of solar panels at grossly undervalued prices and the illegal transfer of foreign exchange through money laundering.
Post Clearance Audit (PCA) South revealed that solar panel importers have engaged in a large-scale over-invoicing / trade-based money laundering operation.
The PCA South also conducted audit of solar panel importers, uncovering over-invoicing at the import stage amounting to a staggering Rs. 69.5 billion. This alarming discovery indicates the existence of black money transfers out of the country, raising concerns about illicit financial activities.
Trade-based money laundering poses a serious threat to the economy, as it undermines legitimate trade, compromises fiscal revenues, and facilitates the transfer of illicit funds across borders. The detection of such a massive scam highlights the need for stronger regulatory measures and enhanced coordination between the concerned authorities to curb such criminal activities effectively.