FBR makes history in money laundering case

ISLAMABAD – The Federal Board of Revenue (FBR) has won the first ever court conviction for the offence of money laundering, involving massive tax evasion.

The top tax body won the case against Khyber Pakhtunkhwa-based businessman, identified as Habibullah, who ran M/s Rai Trading Company, Bajaur.

The FBR spokesperson in a statement said: “The accused is punished with imprisonment, fine and forfeiture of entire ill-gotten/concealed money of Rs. 2090 Million”.

#FBR has won the first ever court conviction for the offence of money laundering, involving massive tax evasion. The accused is punished with imprisonment, fine and forfeiture of entire ill-gotten/concealed money of Rs. 2090 Million. pic.twitter.com/MdCfLkoydP

— FBR (@FBRSpokesperson) December 2, 2021

The Directorate Intelligence & Investigation, Inland Revenue Service had launched investigation against the convict after finding that transaction made through his accounts did not match his business profile.

In initial probe, the directorate detected his six bank accounts which were used for transaction of Rs2090 million. However, Habibullah had paid only Rs192,877 in taxes in 2015 by providing misleading details to the tax authorities.

As the investigation progressed, the investigators found that the accounts were being used for the purpose of money laundering. The directorate then launched investigation against him under Anti-Money Laundering Act 2010.

Later, the directorate submitted a challan in the court on the basis of massive tax evasion. The court has now awarded punishment to Habibullah over illegal activities.

Earlier this week, FBR Chairman Muhammad Ashfaq Ahmed informed the National Assembly Standing Committee on Finance and Revenue that the tax body has registered 215 First Information Reports (FIRs) against 267 people under the Anti-Money Laundering (AML) Act in the last four years.

He further added that FBR had completed investigations into 44 cases and probe into remaining cases is underway. He said the government had also confiscated properties worth Rs235 billion besides detecting tax evasion to the tune of Rs76 billion.