Three arrested over illegal forex trading in Karachi

KARACHI: The Anti-Money Laundering circle of Federal Investigation Agency (FIA) on Saturday arrested three brothers allegedly involved in the illegal forex trading, ARY News reported.

The FIA’s Anti-Money Laundering circle claimed to have arrested three brothers allegedly involved in the illegal forex trading worth millions, while the alleged mastermind managed to escape from the scene.

Sources within the FIA revealed that the accused had opened more than 60 accounts – of themselves, relatives and acquaintances – for the illegal business of forex trading, while a commission of Rs 30,000 to Rs 40,000 was paid to the account holder per month.

The FIA officials confiscated the check books and ATM cards of the arrested individuals during the raid.

The arrested accused had created a WhatsApp group with the mastermind and other account holders for communication-related to illegal forex trading.

The raid was conducted after a staggering amount of Rs 120 million was transferred to a bank account of Salem Enterprises, which was owned by the arrested brothers.

FIA’s Anti-Money Laundering Circle has taken decisive action by freezing funds in all bank accounts, while the efforts to apprehend the mastermind behind the illicit forex trade are underway.

READ: Pakistan all set to launch online forex trading platform

Back in May 2022, State Bank of Pakistan (SBP) has issued an advisory against offshore foreign exchange trading websites and apps and has cautioned people against buying products or services from these platforms.

SBP, in a statement, said that the central bank has noticed that an increasing number of offshore foreign exchange trading websites, mobile applications and platforms such as OctaFX, Easy Forex, etc. are offering their products and services to residents of Pakistan.

These digital platforms lure people through social media advertisements to buy/invest in their products or services. Examples of such products include but not limited to foreign exchange trading, margin trading, contract for differences, etc.

“It is clarified for the interest of public that buying products and services being offered by aforementioned platforms by any person resident in Pakistan is prohibited and against the laws of the land. Any person in Pakistan buying products or services of such offshore platforms and remitting foreign exchange directly or indirectly to them through any payment channel is making himself/herself liable to be proceeded against for violation of provisions of the Foreign Exchange Regulation Act, 1947 (FERA). Since such platforms are regulated neither by the SBP nor by the Securities & Exchange Commission of Pakistan; hence, the public is hereby advised to be careful and refrain from buying/investing in products and services of such offshore platforms to avoid any potential loss and legal proceedings under FERA,” reads the statement issued by SBP.