Financial Crime World

Title: Alarm over Missing Funds and Alleged Embezzlement in Pakistani Bank: Senate Committee Demands Investigation

Disappearance of Rs410 Million from Overseas Pakistanis’ Accounts

  • The Senate Standing Committee on Finance and Revenue raised concerns over suspected fraud and embezzlement in depositor accounts at a private foreign bank in Pakistan.
  • A complaint was lodged by overseas Pakistanis who claimed that approximately Rs410 million had gone missing from their accounts in a Karachi-based bank in 2017.

Committee’s Concerns and Demands

  • The committee demanded a thorough investigation from the State Bank of Pakistan (SBP), Federal Investigation Agency (FIA), and the bank’s management.
  • Chaired by Senator Saleem Mandviwala, the committee questioned the legislative powers of the caretaker government and urged caretaker ministers for law and finance to provide their views.

Disappearance of Funds: Initial Investigations

  • According to Governor of SBP, Jameel Ahmed, the initial investigation had revealed that the complainants’ claims were unfounded.
  • However, the case was under the FIA’s scrutiny, and the bank had filed a case in the Sindh High Court.

Senators’ Concerns and Views

  • Senator Sadia Abbasi expressed concerns that such incidents could deter people’s trust in the banking industry, making it difficult for them to keep their funds secure or invest safely.
  • Senator Kamil Ali Agha highlighted the seriousness of the matter, emphasizing the potential abuse of public trust by bank officials misusing depositors’ funds.

SBP’s Role in Handling the Situation

  • Chairman of the committee, Saleem Mandviwala, questioned the SBP’s role in handling the situation, expressing concern over its failure to address depositor complaints and its defensive stance towards the bank.
  • The committee questioned whether the caretaker government possessed the legal authority to enact legislation regarding depositor protection and banking companies.
  • The committee decided to summon the governor of SBP, head of the foreign bank, and the director of FIA to the next meeting along with their investigating officers.

Conclusion

  • The session concluded with a unanimous agreement to address the issue of missing funds and alleged misappropriation and improve the overall situation of the banking sector in Pakistan.