India’s big crack! 20 export houses under scanner for illegal Pakistan trade using the UAE route; Business-based money laundering suspect
India cracks on suspicious goods trade with Pakistan! India’s Financial Intelligence Unit (FIU) is investigating about 20 export houses suspected of engaging in illegal money transfer with Pakistan through the UAE Corridor.These export houses are being suspected of goods trade as a way to loot money from Pakistan through UAE.Investigation centers on suspected financial activities, especially in advance, were used to pay cash (CIA) and foreign agents commissions, which possibly hide money laundering. The CIA transaction requires buyers to pay the payment prior to the goods.The transaction under the investigation includes low quality jewelery, semi-precious stones, cosmetics, fragrances, dried fruits and electrical equipment, among other items.
Lens on laundering
A senior official said, “We are looking at the trade-based money laundering between India and Pakistan, where they originally used dummy business to send money out of India. About 20 export homes are subject to scanners.”The official confirmed that the relevant officials have been informed to investigate potential terrorism connections.The Investigation Authority is specifically investigating the transaction in the last 14 months, where with several accounts used to hide the origin of the fund, there are suspicion of product prices and commission.“Some transactions were exceptionally high to the product category and in a case the agent located in the UAE was higher than the total cost of the consignment,” the official said.Also read ‘Big Bain’ action: How India like Pakistan and its allies – Türkiye and Azerbaijan – are the top 5 remediesTo clarify this, the officer provided details about a simple electrical conductor component, usually the price of 100 per unit in the market, which is imported at an extraordinary high value range of ₹ 8,000–19,000 per unit.Additionally, the basic costume jewelery, with a standard market price between ₹ 100-150, was sent to the UAE and later to Pakistan at an increased price of ₹ 30,000 per piece.Cross-border cash transactions face increasing challenges due to strict customs procedures and progression of digital economy, forcing criminals to prepare new money laundering methods, the report states. According to officials, officials across the world maintained vigilance against business-based money laundering activities.The Revenue Intelligence Directorate (DRI) collaborated with Hong Kong officials last year, exposing a scheme containing synthetic diamonds. These low -cost diamonds were imported to India on the values shown more than 100 times in India, which facilitated illegal foreign exchange transfer from India.Further investigation revealed that the import unit was also engaged in export of diamonds to Hong Kong and many other countries.Also read India -Pakistan ceasefire: How India’s punitive measures will continue to hit Pakistan’s critical economy – explained
