How Pakistan's poor are becoming 'penniless billionaires'
Pakistan's newly-elected Prime Minister Imran Khan has vouched to end money laundering in the country, but before that happens thousands of poor have become victims of it. The penniless, who save money for small things, were shocked to find millions in their accounts. After the shock, their reaction turned to fear as they don't know how probing agencies will treat them. Here's their story.
Millions is dumped into accounts of impoverished without their knowledge
When 43-year-old Rasheed, who drives a rickshaw, got $22.5 million in his account he was scared. He thought of running away but his family persuaded him to cooperate with the agencies. Like Rasheed, ice cream vendor Mohammad Qadir also received money he didn't earn. The 52-year-old had never seen a bank and feared being kidnapped by criminal elements. His acquaintances called him 'penniless billionaire'.
Understanding how does this money laundering scheme work
Here's how it works: Money is deposited in accounts of the poor, then taken out suddenly, enabling movement of billions out of the country. Despite being quite frequent, the scale of such incidents is unknown. Reports suggest some of the wealthiest in Karachi, including those close to former President Asif Ali Zardari, reap the benefits of this scheme. They evade taxes and hide assets.
A Paris body found Pakistan failed to combat terror financing
The Supreme Court of the country ordered a commission to investigate this scam. It was found at least $400 million was moved out of Pakistan. Nearly 600 companies and individuals are part of this scandal, the commission found. Notably, Paris based money-laundering monitor Financial Action Task Force (FATF) put Pakistan on its watchlist this year. The body noted terror financing isn't being tackled.
Khan has vouched to take action against corrupt citizens
Money laundering is one of the many problems crippling Khan government. About it, the cricketer-turned-politician said he won't spare anyone who is corrupt. "This is your stolen money. It was stolen on public contracts... and transferred into these accounts, then laundered abroad," Khan said in a widely televised interview. But for the 'penniless billionaires', the speeches can't undo the damage.
