The Federal Board of Revenue (FBR) has recently uncovered a massive money laundering scheme worth Rs47 billion after a thorough investigation by auditors. This scandal involves two companies based in Peshawar and has been categorized as “trade-based money laundering.”
According to the FBR report, these companies allegedly caused a significant financial loss of Rs25 billion to the national exchequer through under-invoicing tactics. The money laundering and under-invoicing activities were carried out under the guise of solar panel transactions.
The First Information Report (FIR) filed by the FBR has named the owners of Moon Light Traders and Bright Star companies as the main culprits involved in this scandal. The report also reveals that the Bright Star Company was engaged in under-invoicing in 2013, while auditors examined records of 705 transactions conducted by Moon Light Traders.
It is alarming to note that these fraudulent activities have been ongoing since 2017 and persisted until 2022. A comprehensive report on trade-based money laundering and under-invoicing has been forwarded to the Caretaker Prime Minister, Anwaarul Haq Kakar.
In a similar incident reported in September, the FBR uncovered the largest tax fraud in the country’s history, totaling Rs314 billion. This fraud was committed by a fake company named K H & Sons, who misrepresented themselves as an iron and steel business with addresses at Liaquat Market, Agri Market, and M A Jinnah Market.
It has been discovered that the fake company was involved in various illegal activities using its name. Despite these revelations, the FBR has yet to file any charges against the Rs314 billion tax fraud. There are concerns that the perpetrators may escape abroad if the First Information Report (FIR) is not filed promptly.
It is crucial to take swift action and hold these perpetrators accountable for their illegal activities, ensuring that they face legal consequences. By doing so, it will not only protect the national exchequer but bolster trust in the country’s financial systems.