The first cryptocurrency-based money laundering case in the province has been the subject of an investigation by the Khyber Pakhtunkhwa (KP) Zone of the Federal Investigation Agency (FIA).
According to sources, the alleged offender, Nowshera district resident Danyal Farooq, was arrested by the FIA last night after a FIR was filed against him for large-scale transactions.
The money launderer, according to the FIR, managed many bank accounts that saw more than 870 million rupees in transactions over the course of the previous three years, including 437 million rupees in credit transactions and around 436 million rupees in debit transactions.
Daniyal Farooq told the FIA when it called him in for an inquiry, as Dawn reported, that he was only carrying out “general order supply” to various stores.
According to reports, the suspect used to accept deposits of Pakistani rupees into his bank accounts in return for cryptocurrencies. The Federal Board of Revenue was not aware of his money exchange operation, according to the FIA (FBR).
According to FIA investigators, all of the suspect’s transactions were unauthorised, illegal, and akin to criminal shadow banking because cryptocurrencies are not permitted in Pakistan under the directives of the State Bank of Pakistan (SBP).
Afzal Khan, the Deputy Director of the Commercial Banking Circle of the FIA, said it had been discovered that the accused had hidden their money-laundering activities behind cryptocurrencies.
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