By Our Correspondent
LAHORE: The Federal Investigation Agency (FIA) has arrested a man for allegedly operating an illegal hawala-hundi network under the cover of a jewellery business at Shah Alam Market in Lahore, officials said on Tuesday.
According to FIA Corporate Banking Circle (CBC) Lahore, the raid was conducted on September 1 following secret information regarding suspected illegal currency transactions in the busy commercial market.
The FIA team arrested the suspect, identified as Hafiz Usman Ali, during the operation.
Officials alleged that the suspect had been running an unauthorised hawala-hundi setup while using a jewellery shop as a front for the operation.
Rs1.6 million, foreign currency recovered
During a search of the premises, FIA officials claimed to have recovered Rs1.604 million in Pakistani currency and 300 Chinese yuan.
Mobile phones, registers and messages allegedly linked to hawala-hundi transactions were also recovered and taken into custody as potential evidence, according to the agency.
The seized records and electronic devices are expected to be examined as part of the investigation to determine the nature and extent of the alleged transactions and identify any other individuals potentially connected with the operation.
Case registered under Foreign Exchange Regulation Act
FIA CBC Lahore SHO Irfan Khan said a case had been registered against the accused under relevant provisions of the Foreign Exchange Regulation Act, 1947.
The investigation is continuing.
Hawala and hundi involve informal mechanisms for transferring money outside conventional banking channels. Unauthorised operations can attract action under Pakistan’s foreign exchange and other applicable laws.
The allegations against the arrested suspect remain subject to investigation and determination by a court of law.
