TOBA TEK SINGH: The National Cyber Crime Investigation Agency (NCCIA) is being established to counter the increasing incidents of cybercrimes, and stringent measures are being implemented to control smuggling.

This was stated by Federal Investigation Agency (FIA) Director Rai Ijaz Ahmad, who addressed the business community at the FCCI, says a press release.

He advised FCCI members to transition to transparent transactions through government channels instead of making payments through “hawala hundi”.

He said while 50 per cent of remittances through hawala hundi dealers are related to genuine businessmen, the FIA prefers to overlook unintentional irregularities on a “Mens Rea” basis.

“Our focus should be on dismantling the network of such dealers,” he said, quoting the Financial Action Task Force and mentioning that Pakistan was placed in the grey list due to alleged money laundering.

Mr Ahmad said the FIA, in close collaboration with state organisations and businesspeople, has been working to remove Pakistan from the grey list, and a separate dedicated anti-money laundering circle has been created to address the issue.

He said the Financial Management Unit in the State Bank of Pakistan is monitoring available financial data, “red-flagging” dubious, irregular, and disproportionate transactions. A team of senior officers examines these cases and sends suspicious transactions to the relevant departments or agencies for further investigation.

Businessmen were urged to exercise caution and refrain from engaging in illegal practices, as the monitoring system is set to become more stringent in the coming days. He explained the jurisdiction of FIA and other departments, noting that tax matters generally fall under the ambit of the FBR. However, any forgery or fraudulent transaction invokes the involvement of FIA.

He emphasised that businessmen should make payments directly to the parties instead of using irrelevant accounts.

Suspicion, he noted, may arise if a textile owner makes an out-of-proportion payment to a cement or steel bar unit. Investigations would become apparent if a transaction of billions of rupees is made through the bank account of a low-paid salaried person. Mr Ahmad said that fake invoices, seemingly aimed at saving 2-3% income tax, often extend to rebates of 17-18pc, with the involvement of FBR officials and bank staff in many cases.

He said that government agencies aim not to harass genuine businessmen, but conscious efforts should be made to eliminate Hawala Hundi and Benami accounts.

Ahmad suggested that FCCI should organise an awareness session on this subject to sensitize and educate its members about the potential involvement in illegal practices, whether intentional or unintentional.

Regarding ponzi housing schemes, he said it falls under NAB and Anti-Corruption Establishment, but the FIA may intervene if electricity is provided to such schemes without NOCs. He said the prevalence of the informal economy in Pakistan but emphasized the need to shift towards the documented economy. Strict measures, he warned, would be taken to curb smuggling, and businessmen were advised to avoid engaging in this illegal practice.

Published in Dawn, January 10th, 2024