In a raid on January 23, the Federal Investigation Agency (FIA) had found evidence that the Shahrah-e-Faisal branch of the Pakistan Currency Exchange (PCE), one of the leading currency exchange companies of the country, had been involved in the illegal business of hawala (also known as hundi), but the firm’s security guards had kept the agency’s personnel engaged in crossfire while the evidence was removed. These revelations were made on the condition of anonymity by an FIA Crime Circle-I official, who was part of the agency’s party that conducted the raid at the PCE. The official said the FIA had received information about some people running the hawala business in a room on the floor above the office of the PCE’s Shahrah-e-Faisal branch.
He said when an FIA party raided the office, they found enough evidence to justify the raid and take legal action against the PCE, but when the agency tried to recover the evidence, the private guards of the exchange’s owner attacked the FIA party and removed the evidence. However, PCE Chief Executive Officer (CEO) Malik Bostan said the FIA had not found any evidence in the room, which was actually being used as the exchange’s head office. The FIA official said the agency’s party had found the computer that had the record of illegal transactions carried out by the PCE, but the cunning exchange owner had the computer shifted during the crossfire between the FIA officials and the PCE guards.
“We were at the Shahrah-e-Faisal branch for 25 minutes and no guard resisted our raid. However, as soon as one of the FIA officials found the record of PCE’s illegal transactions on a computer, the guards launched an assault on us,” he added.
He said there were over two dozen guards at the PCE office and by the time the FIA was able to subdue them to end the firing, the staff of the exchange had removed the record of their illegal transactions.
He also said the PCE does not have the office on the map that was approved by the State Bank of Pakistan (SBP) before the Exchange was granted a license.
“Before a licence is granted to a bank or an exchange company, the SBP approves a map, regarding which the applicant briefs the central bank on its location and design for approval,” he added.
However, the PCE CEO Bostan claimed the PCE had received approval for the office from the SBP when it was granted a licence.
He said the FIA cannot justify the raid because of an agreement between the agency and Exchange Companies Association of Pakistan (ECAP).
“Under this agreement, the FIA has to take the SBP and the ECAP on board before conducting a raid at any of the registered exchange companies in the country,” he added.
“The FIA Crime Circle is not authorised to conduct raids at exchange companies, as it comes under the ambit of the FIA Commercial Banking Circle.”
Bostan said for the FIA Crime Circle to raid the PCE’s Shahrah-e-Faisal branch, the agency should have followed the modalities decided in the meeting of the FIA, the ECAP and the SBP.
“The FIA was misled by its informers to defame us. According to the protocol, the SBP issues a notice to an exchange company if a complaint is received against the latter. And it the exchange company fails to respond; then action can be taken. However, in the case of PCE’s Shahrah-e-Faisal branch, action was taken before filing a complaint to the SBP.”
FIA Crime Circle Deputy Director Akbar Baloch said the agency has the right to raid any exchange company without serving any notice.
He said it is the law and if the FIA receives any information regarding suspicious or illegal activities being carried out at any of the exchange firms, the agency would conduct a raid without any prior notice.
