KARACHI: Pakistan’s Federal Investigation Agency (FIA) has arrested at least eight suspects in nationwide raids since last week, it said on Saturday, in a crackdown on illegal foreign exchange businesses in the country’s southern and southwestern regions bordering Iran and Afghanistan.
The arrests followed a July 22 meeting in Islamabad between a senior official of the military-run Inter-Services Intelligence (ISI) and representatives of the Exchange Companies Association of Pakistan (ECAP). The interaction took place amid growing concern over the rupee’s decline, which last week fell to a 22-month low of Rs284.97 against the US dollar.
Following the meeting, the FIA began operations targeting illegal currency dealers, including operators of hundi and hawala, informal money transfer systems that operate outside official banking channels. While commonly used for remittances, these systems are also prone to abuse for money laundering and terror financing.
Raids were conducted in Karachi, Quetta, Gwadar and Chaman.
“The FIA, acting on credible source reports, conducted raids targeting illegal foreign exchange traders and hundi-hawala operators,” the agency said in response to written questions from Arab News.
