The ongoing Federal Investigation Agency (FIA) into fake bank accounts case has hit a breakthrough. One of the key suspects in case was arrested by Interpol on the request of the FIA after he arrived in Jeddah from London. Aslam Masood, who has already been booked by the FIA’s Karachi branch in the fake accounts case, is believed to have been involved in the opening of fake accounts in various banks in the names of different persons, whose copies of Computerized National Identity Cards had been used without their consent and knowledge. The accounts were allegedly used to channel funds received through kickbacks. A Joint Investigation Team (JIT) tasked with probing fake bank accounts has submitted a progress report in the Supreme Court which revealed that transactions of Rs54 billion were made through 107 fake bank accounts. The fake accounts were reportedly opened in connivance with senior bankers and illegitimate funds in billions were deposited in these accounts by the associates of Aslam Masood and then transferred to other accounts for the purpose of money laundering.
This is a test case for financial regulation institutions especially with the FATF grey list and close international scrutiny in the backdrop. Investigating authorities are confident that these ‘benami’ accounts were being used to launder money received from kickback and huge sums of bribes by several influential political elements. Even top leaders of a major political party have been named and are under investigation. It is something of common knowledge in Pakistan that corruption has become an integral part of political and economic spheres of society and an intricate web linking all the corrupt and nefarious elements is omni-present. This is the real establishment that controls everything that happens in country. If thoroughly investigated and everyone involved is brought to book, only then can the relevant institutions begin untangling this web of corruption. This maybe the tip of iceberg but it will be a good first step and set precedent for future investigations and prosecutions. This will also provide policy makers with something to show to international financial regulators and Pakistan may avoid getting black listed by FATF.
