NEW YORK, 22. A Pakistani national was arrested by US law enforcement agents on charges of laundering more than $33 million by sending money to Pakistan from the basement of his Times Square restaurant here.

Khalid Shaheen Butt, US Federal authorities alleged, ran the “underground banking service operation” from the restaurant and helped launder funds, some of which came from narcotics trafficking.

The complaint, filed in Manhattan federal court, said Mr Butt’s foreign exchange concern was one of the largest remitters of money to Pakistan in the New York area and that some of the funds sent there were related to narcotics trafficking.

Law enforcement officials allegedly observed Mr Butt and his business receiving frequent cash deliveries, tens of thousands of dollars at a time, from various people. The complaint alleged these deliveries amounted to hundreds of thousands of dollars during one three-month period alone.

Mr Butt is one of the closest confidants of former Prime Minister Nawaz Sharif and his brother Shahbaz Sharif. He recently hosted dinners for Mr Shahbaz Sharif at his restaurant.