Senate committee probes massive money laundering scheme tied to solar panel imports

Senate Standing Committee on Finance has initiated a rigorous inquiry into a huge money laundering scheme linked to the import of solar panels, reported the 24NewsHD TV channel on Wednesday.  

Over the course of five years, seven companies stand accused of laundering a staggering Rs 70 billion. These transactions transpired during a period when Pakistan had imposed a ban on the issuance of Letters of Credit (LCs).

One importer deposited a staggering Rs 14 billion in cash, while another funneled Rs 11 billion into banks.

Member Customs Policy has expressed apprehension that these colossal deposits should have triggered alarm bells within the banking sector long before.

The Deputy Governor of the State Bank, in a startling disclosure, revealed that the State Bank itself was instrumental in exposing this intricate financial web. The case has been characterized as a clear instance of commercial money laundering, leading banks to file a total of 37 suspicious transaction reports against the individuals and entities involved.

Notably, any deposit exceeding 20 lakh rupees is mandated to be reported to the Financial Monitoring Unit (FMU). It appears that these large deposits were used as a means to repatriate funds out of the country, taking advantage of the zero-rated status of solar imports.

The Customs authorities, entrusted with the responsibility of scrutinizing the valuation of imported goods, now find themselves under scrutiny.

Kamil Ali Agha has emphasized that the magnitude of these irregularities could not have transpired without deliberate intent.

The director of the Federal Investigation Agency (FIA) pointed out that customs clearance occurs at the port, suggesting that had vigilance been exercised there, this colossal money laundering scheme might have been thwarted earlier.