International Forex Frauds Uncovered: Pakistan, Nigeria, and Sri Lanka Crack Down on Irregularities

Three countries - Pakistan, Nigeria, and Sri Lanka - have recently taken steps to investigate significant Forex frauds and irregularities, raising concern over the industry’s reputation.

Pakistan

• Major Scam Uncovered: Civil police in Lahore, Pakistan, discovered a massive financial scam involving Rs 1.25 billion ($15 million). (Source: The Express Tribune)
• Arrests Made: Nine employees of a local money exchange company were arrested for misappropriating funds, with the help of three other individuals. (Source: The Express Tribune)
• Attempting to Flee the Country: The arrested employees were attempting to leave the country when they were taken into custody.

Nigeria

• Banks Engaged in Speculation: The Central Bank of Nigeria (CBN) announced that three banks have been caught engaging in foreign exchange speculation. (Source: Business Day Nigeria)
• Inappropriate Purchases: The banks reportedly purchased approximately $200 million each, three times, not based on genuine demand but anticipating further depreciation of the naira. (Source: Business Day Nigeria)

Sri Lanka

• Alleged $1.1 Million Fraud: The Attorney General’s Department, the CID, and the Foreign Ministry have been made aware of an alleged $1.1 million foreign exchange fraud by Ceylinco Shriram Ltd. (Source: [Daily Mirror](https://www.dailymirror.lk/business-finance/Forex-scam-Deputy-CEO-of-Ceylinco-Shriram-arrested/146-175110-news-business detail.html))
• Deputy CEO Suspected: Allegations include the Deputy Chief Executive Director, Hiran de Silva, wiring the money to a US bank account without following exchange control regulations.

Global Impact of Forex Frauds

• Recurring Issue: Forex fraud appears to be a recurring issue worldwide, with increasingly larger amounts of money at stake. (Source: Financial Times)
• Lack of Confidence: Such incidents undermine confidence in the Forex industry as a whole, leaving regulators and market participants grappling with maintaining transparency and trust. (Source: Financial Times)