LAHORE: The Federal Investigation Agency (FIA) has intensified its crackdown on the people involved in illegal hundi/hawala business in Punjab, especially Lahore, on reports that this trade of parallel banking is thriving.

“During the last one month we have conducted 17 raids in Lahore and Faisalabad and arrested more than 20 people involved in hundi/hawala business,” an FIA official told Dawn on Thursday.

The suspects have been booked under the Foreign Exchange Regulation Act 1947 under which they face imprisonment up to three years.

On Thursday, a team headed by Deputy Director Jamil Ahmad Khan conducted its 18th raid at Moin Centre, Abbott Road, Lahore, and arrested four persons – Muhammad Akram, Akbar Jan, Asim and Hamza – for their alleged involvement in hundi and hawala transactions.

A sum of Rs5.2 million, Saudi Riyal 94,600 and record about transfer of money have been seized.

The FIA makes the recovered money the case property.

According to the official, the arrested persons were involved in transferring money to Afghanistan, China and Middle East.

“As the people want tax evasion and conceal their sources of income, they go for hundi/hawala mode of transaction and pay a handsome commission to agents,” he said.

The official said besides the source report, the FIA got a clue to the illegal businesses through the arrested persons. “Most of the people involved in this business are working as chain,” he said, adding the agency was also taking action against those money changers functioning without permission of the State Bank.

“We are also monitoring some money changers suspected of of doing hundi/hawala business under the legal cover,” he said.

FIA’s Punjab Director Dr Usman Anwar told Dawn the agency had launched the crackdown in collaboration with the SBP and the National Counter Terrorism Authority.

“The crackdown is being extended to other districts as well,” he said.

Published in Dawn, November 11th, 2016