QUETTA, Balochistan – The Federal Inquiry Agency (FIA)‌ has apprehended four individuals in Quetta ​and Gwadar, Balochistan, on allegations of⁣ involvement in hawala/hundi and unauthorized currency⁢ exchange operations. The arrests,‍ announced Friday, ⁣represent a ⁣crackdown on illicit‍ financial activities within the province.

Acting on ​intelligence regarding ‍the ⁢illegal currency exchange network, teams from the FIA’s ​Commercial Banking Circle in Quetta and Composite Circle in Gwadar executed coordinated raids. The ​suspects have been identified as Haji Sharif, Abdul Rehman,⁣ Riaz, and Nazeer Ahmed.

During the raids,FIA officials recovered a considerable amount of foreign and⁢ local currency,including 1,072 US dollars,5,770 Afghanis,2,485 Turkish Lira,900,000⁢ Indochina Rupees,5.3 million Iranian Rials, and 2.7 million pakistani Rupees.⁣ Additionally,authorities seized⁢ mobile phones⁤ and 23 cheque books belonging too various commercial ⁢banks.

“All four accused ‍were ‍operating an illegal currency⁣ exchange business without the required license,” stated a senior FIA official.‌ “This activity⁤ undermines the formal financial system ‌and facilitates illicit financial flows.”

The FIA confirmed ⁤that a thorough investigation is currently‌ underway to determine the full extent of the network and identify any further accomplices. ​ The seized assets and documents are being analyzed as part of the ongoing probe.

Understanding Hawala/Hundi and Illegal Currency Exchange

Hawala and hundi are ‌informal value transfer systems based on ⁤trust and a network of brokers. While not inherently illegal, they are often used to circumvent formal financial regulations, facilitate money laundering, and ⁣finance illicit activities.⁣ Illegal currency exchange, operating without a license, contributes to economic‍ instability and can fund criminal enterprises. Pakistan has strict regulations ‌governing currency exchange to‍ maintain financial‌ stability and combat ‍illegal⁤ financial flows. The State Bank of Pakistan (SBP) oversees and regulates authorized currency exchange dealers.

The ‌use of these informal systems is particularly prevalent in regions with‍ limited access to formal ‍banking services or where regulations are perceived ​as‍ overly​ restrictive. Authorities worldwide are increasingly focused on disrupting these networks to combat financial crime.

Frequently Asked Questions

What is hawala/hundi?

Hawala/hundi is an informal system of transferring money without physically moving it. It ⁢relies on a ​network of brokers who trust each other and ⁣settle accounts later.

Is ⁣hawala/hundi illegal?

The system itself isn’t always illegal, but it’s often used for illicit purposes like money laundering and terrorism financing,⁤ making those activities illegal.Operating an unlicensed currency exchange is illegal.

What are the penalties for illegal‍ currency exchange in Pakistan?

Penalties vary depending on the severity of the offense, but⁤ can include fines,⁣ imprisonment,⁣ and confiscation of assets. The FIA is the primary agency responsible for investigating and prosecuting these crimes.

What is the role of the FIA in combating financial crime?

The Federal Investigation ‌Agency (FIA) is Pakistan’s primary agency for investigating and prosecuting financial crimes, including hawala/hundi, illegal currency exchange,⁣ and money laundering.