ISLAMABAD – Business tycoon Malik Riaz established Pakistan’s top real estate empire over time and he became one of its wealthiest historical figures. Once a powerful real estate developer has now landed in hot waters as Riaz and his son have been declared proclaimed offenders and now authorities probe finds alleged money laundering by the firm, linked to his company.
Sources familiar with the development revealed that the Federal Board of Revenue (FBR), the country’s apex tax collection authority, has found alleged money laundering and tax evasion of billions of rupees by a trading company that has been linked to Bahria Town.
As the wealthy property continues to remain in dire straits, FBR started high-level investigations against Vicky Trading Pvt. Ltd under the Anti-Money Laundering Act. During the probe, FBR found that Vicky Trading Company operated more than a dozen accounts in several commercial banks in Pakistan.
Investigators linked fund inflows from Bahria Town to Vicky Trading Pvt. Ltd of over Rs300 billion, from 2014-2018. The investigation also found irregularities in the firm’s accounts, hinting they were used for laundering billions.
The company’s directors were also accused of concealing assets, non-disclosure of transactions, and tax evasion.
The report shared by the leading daily claimed that an inquiry into Rs23bn money laundering case was started in mid-2019 in response to a complaint by an Inland Revenue official.
During the probe, the trading firm said it has not held any land in its name out of funds transferred to it by other entities.
Interestingly, the Investigation also revealed that the company is operated by directors or nominees solely.
Officials found that there was no staffers or employees on the company’s payroll, as the company kept their modus operandi under wraps. The report also claimed that a demand of Rs23.541 billion was issued to the company due to a discrepancy of Rs82.825 billion.
On the other hand, the trading firm argued that the investigation violated Anti-Money Laundering (AML) Act, 2010 by examining records dating back to 2013 instead of starting from 2017. The accused mentioned contributing to the national kitty, and raised questions at the investigation calling it harassment.
Bahria Town owner Malik Riaz, son Ali Malik booked over ‘bogus cheques of Rs182 million’
