How Industrialized West Enables Corruption in Developing World

Some have called London the "Money Laundering Capital of the World" where corrupt leaders from developing nations use looted wealth from their people to buy expensive real estate and other assets. Private individuals and businesses from poor nations also park money in the west and other off-shore tax havens to hide their incomes and assets from the tax authorities in their countries of residence.

The multi-trillion dollar massive net outflow of money from the poor to the rich countries has been documented by the US-based Global Financial Integrity (GFI). This flow of capital has been described as "aid in reverse". It has made big headlines in Pakistan and elsewhere since the release of the Panama Papers and the Paradise Leaks which revealed true owners of offshore assets held by anonymous shell companies. Bloomberg has reported that Pakistanis alone own as much as $150 billion worth of undeclared assets offshore.

Politicians Dominate Off-shore Company Owners in Panama Leaks
Aid in Reverse:

In 2012, the latest year for which data is available, developing countries received $1.3 trillion, including all aid, investments, worker remittances, and other income from abroad. In that same year some $3.3 trillion flowed out of them. In other words, developing countries sent $2 trillion more to the rest of the world than they received, according to the data compiled by the US-based Global Financial Integrity (GFI) and the Centre for Applied Research at the Norwegian School of Economics and reported by the UK's Guardian newspaper.

Laws in America and Europe allow the creation of anonymous shell companies. An anonymous shell company is a corporate entity that has disguised its ownership in order to operate without scrutiny from law enforcement or the public. These “phantom firms” can open bank accounts and wire money like any other company, making them a favorite tool for money launderers to hide their business and assets from authorities, according to the US-based Global Financial Integrity (GFI).

GFI estimates that developing countries have lost as much as $13.4 trillion through unrecorded capital flight since 1980. Bloomberg reports that Pakistanis own $150 billion worth of undeclared offshore assets, attributing this estimate to Syed Muhammad Shabbar Zaidi, a partner at Karachi-based A.F. Ferguson and Co. -- an affiliate of PricewaterhouseCoopers LLP.

Impact on Economic Growth:

There's a direct relationship between investment and GDP. Flight of capital reduces domestic investment and depresses economic growth in poor countries. Lower tax revenues also impact spending on education, health care and infrastructure, resulting in poor socioeconomic indicators.

In Pakistan, for example, it takes investment of about 4% of GDP to grow the economy by 1%. Lower levels of investments in the country has kept its GDP growth below par relative to the rest of South Asia.  Any reduction in the outflow of capital to offshore tax havens will help boost economic growth in Pakistan to close the gap with its neighbors, particularly Bangladesh and India whose economies are both growing 1-2% faster than Pakistan's.

Panama Papers Leak:

There is an entire industry made up of lawyers and accountants that offers its services to help hide illicit wealth. Mossack Fonseca, the law firm that made headlines with "Panama Leaks", is just one example of companies in this industry.

Mossack Fonseca's 11.5 million leaked internal files contained information on more than 214,000 offshore entities tied to 12 current or former heads of state, 140 politicians, including Pakistan's now ex Prime Minister Nawaz Sharif's family.  Icelandic Prime Minister resigned voluntarily and Pakistani Prime Minister was forced out by the country's Supreme Court.

The Panama list included showbiz and sports celebrities, lawyers, entrepreneurs,  businessmen, journalists and other occupations but it was heavily dominated by politicians.

War on Tax Evasion and Money Laundering: 

Organization of Economic Cooperation and Development (OECD), the club of world's rich industrialized nations, and some of its member states appear to be taking some steps to stem the global rising tide of tax evasion and money laundering.

OECD is promoting  enhanced co-operation between tax authorities through AEOI (Automatic Exchange Of Information) to bring national tax administrations in participating countries in line with the globalized economy.

Several countries, including the United Kingdom, are working on legislation forcing the disclosure of the ultimate beneficial owners of the properties held by anonymous shell companies. The new laws will establish publicly accessible registry of beneficial owners of real estate.

Tax Amnesty Schemes:

Developing countries are offering tax amnesty schemes to bring back the off-shore wealth to help their economies. Argentina and Indonesia did this recently.  Indonesia's tax amnesty in 2017 saw $330 billion worth of assets declared.   Pakistan is in trying to the do the same to help build its dollar reserves and expand its tax base.

Under Pakistan's announced tax amnesty, Pakistani citizens can declare previously undeclared foreign assets and still keep them abroad by paying 5% penalty for liquid assets and 3% penalty for real estate. Alternatively, they can declare and repatriate liquid assets to Pakistan by paying just 2% penalty.

The assets covered by the amnesty include "real estate, mortgaged assets, stock and shares, bank accounts, bullion, cash, jewels, paintings, accounts and loan receivables, beneficial ownership or beneficial interests or contribution in offshore entities and trusts."

Summary:

Laws and practices in the West and other offshore tax havens encourage corruption in developing nations that results in net outflow of trillions from poor countries to the rich industrialized world, according to the US-based Global Financial Integrity (GFI). There are some efforts underway to stem this outflow. Pakistanis hold as much as $150 billion in undeclared assets overseas. The latest tax amnesty in Pakistan is an attempt to bring some of it back to the country, or at least collect 3-5% of it in the form of penalties.

Related Links:

Haq's Musings

South Asia Investor Review

Did Musharraf Steal Pakistani People's Money?

Pakistan Economy Hobbled By Underinvestment

Raymond Baker on Corruption in Pakistan

Nawaz Sharif Disqualified

Culture of Corruption in Pakistan

US Investigating Microsoft Bribery in Pakistan

Zardari's Corruption Probe in Switzerland

Politics of Patronage in Pakistan

Why is PIA Losing Money Amid Pakistan Aviation Boom?

Comments

Riaz Haq said…
Pakistan Seeks Up to $1 Billion From Expats as Reserves Dwindle
By
April 15, 2018, 11:48 PM PDT

https://www.bloomberg.com/news/articles/2018-04-16/pakistan-seeks-up-to-1-billion-from-expats-as-reserves-dwindle

Pakistan seeks manager for certificate sale due by June
South Asian nation foreign reserves falling fastest in Asia
Pakistan plans to raise as much as $1 billion from its diaspora in its latest effort to boost foreign-exchange reserves that have dropped close to the lowest in three years.

The government plans to launch an overseas certificate in U.S. dollars and rupees by June to raise between $500 million and $1 billion a year, Zafar Masud, director general of National Savings at the finance ministry, said by phone on Monday. Pakistan seeks bids for financial managers by April 30 for the transaction, he said.

“We were among the only few countries which didn’t have this product for expats,” said Masud. The sale will offer returns “better than what they’re getting in their home markets.”

Pakistan’s economy is facing headwinds before elections in July with foreign exchange reserves dropping at the fastest pace in Asia in the past year. The government also announced an amnesty offer this month that allows overseas Pakistanis to repatriate funds after paying a 2 percent cash tax. Islamabad decided not to issue international bonds after global rates spiked.
Riaz Haq said…
How to defeat Pakistan’s corrupt elite and return wealth to the people
The Pakistani opposition leader, Imran Khan, outlines his vision for change.

https://www.newstatesman.com/world/2018/04/how-defeat-pakistan-s-corrupt-elite-and-return-wealth-people

For PTI, it is not just “politics”: it is a commitment to building a welfare state where the rule of law, meritocracy and transparency are guaranteed to all of our citizens. Pakistan is a country with abundant natural resources and wealth that have been stolen by a corrupt and predatory elite. We are committed to bringing this stolen wealth back to be used for the welfare of our people.

-------------

The Pakistani state must be responsive to the people in an accountable and transparent manner, and the nation’s development must be on the basis of equality and inclusivity. Only then can Pakistan play a stabilising role in the region, resolving to seek peace with its neighbours through conflict resolution and co-operation. Our general election in July is critical for the future of my country.
Riaz Haq said…
Sharif’s legal woes, which the veteran leader says are politically motivated, could further boost Khan in the run up to the elections as an anti-corruption court is due to soon deliver a verdict on another Sharif trial. Khan has predicted Sharif will be jailed before the polls, likely in July.


To dislodge Sharif’s Pakistan Muslim League-Nawaz (PML-N) party, Khan’s PTI will have to make inroads into Pakistan’s biggest province, which is home to 110 million people and a well-oiled PML-N electoral machine built over several decades.

https://www.reuters.com/article/us-pakistan-politics-khan/pakistans-imran-khan-woos-poor-vows-radical-change-in-election-pitch-idUSKBN1I00UQ

With the red-brick minarets of Lahore’s Mughal-era Badshahi mosque in sight, Khan outlined a populist 11-point plan to usher in a new era of prosperity that he envisages for Pakistan after the general election at which he hopes to become prime minister.

“Today we are at crossroads,” said Khan, a former cricketing hero and founder of the Pakistan Tehreek-e-Insaf (PTI) party.

“It is time to change our destiny and think big.”

Khan told a boisterous crowd of about 100,000 people that Pakistan was “heading towards destruction” but his plan would help forge a fairer society and steer Pakistan towards a path first envisaged by the nation’s father, Muhammad Ali Jinnah.

Khan said that if elected he would build schools and “world class hospitals” across the country, while farmers would get cheap loans. He also pledged to build 5 million homes for the poor, which would create jobs and stimulate the economy.

After spending much of his post-cricket political career on the fringes, Khan has in recent years emerged as a key challenger to Sharif, a three-time prime minister who was ousted by the Supreme Court last year but whose party retains power.

Sharif’s legal woes, which the veteran leader says are politically motivated, could further boost Khan in the run up to the elections as an anti-corruption court is due to soon deliver a verdict on another Sharif trial. Khan has predicted Sharif will be jailed before the polls, likely in July.


Khan, who has sought to shed his playboy image of the past, is betting that his anti-corruption message, coupled with anti-America rhetoric and a projecting image of pious devotion, will propel him into power in the deeply conservative Muslim nation of 208 million people.

In Lahore, Khan’s message resonated with many of the bandana-wearing young men waving PTI’s green and red-color flags.

“Imran Khan has given us the slogan of ‘New Pakistan’ and that’s what we want,” said Shahzad Khan, 17, in reference to the “Naya Pakistan” slogan used by PTI.

Sharif has accused Khan of being a puppet of the powerful military establishment that has a history of meddling in Pakistani politics. Khan denies colluding with the army and the military denies interfering in modern-day politics.

-----
Sharif was the chief minister of Punjab in the 1980s and his younger brother Shahbaz has ruled the province since 2008, entrenching PML-N’s support across the wealthiest of Pakistan’s four provinces.

“We feel they are weakening with every day,” Khan told foreign journalist ahead of the rally.

He added that unlike in 2013, when PML-N swept to power, this time around many of the so-called “electables” - politicians who carry large rural vote banks due to their status as tribal elders, feudal lords and heads of various clans - will switch allegiances away from PML-N to PTI.

“The electables...weigh things up, they want to be on the winning side,” Khan told foreign media.

But at the Lahore rally, Khan shunned talk of electables and focused on promising a new dawn for Pakistan’s poor.

“This system cannot run unless we stand up with the downtrodden,” he said. “I am standing with you, it is time of make new Pakistan.”
Riaz Haq said…
With new order on unexplained wealth, UK can seize assets of corrupt politicians, criminals
Property in London and other major cities in the United Kingdom is said to be the major destination of corrupt cash.

https://www.hindustantimes.com/world-news/with-new-order-on-unexplained-wealth-uk-can-seize-assets-of-corrupt-politicians-criminals/story-8lDQIbyB1kvGsBUzJIjtaP.html

Corrupt foreign politicians and criminals who launder an estimated £90 billion every year through the United Kingdom will need to explain their wealth under a new law called Unexplained Wealth Order (UWO) that came into force this week, or face seizure.

Property in London and other major cities in the United Kingdom is said to be the major destination of corrupt cash. The British news media mention Russian oligarchs in this regard, but the measure applies toindividuals from all countries.

Transparency International UK has identified £4.4 billion worth of property in the UK that may be the target of UWOs. Five properties it suspects had been bought using corrupt wealth includes two by former Pakistan prime minister Nawaz Sharif in London.

Provided under the Criminal Finance Act, the UWO allows authorities to freeze and recover property if individuals are unable to explain how they acquired assets in excess of £50,000. Previously, British authorities had few powers to act unless the individuals had a conviction in the country of origin.


Ben Wallace, security minister, told The Times on Saturday that he wanted the “full force of the government” to bear down on criminals and corrupt politicians using Britain as a playground and haven: “When we get to you we will come for you, for your assets and we will make the environment that you live in difficult”.

“If they are an MP in a country where they don’t receive a big salary but suddenly they have a nice Knightsbridge townhouse worth millions and they can’t prove how they paid for it, we will seize that asset, we will dispose of it and we will use the proceeds to fund our law enforcement,” he added.

Rachel Davies Teka of anti-corruption Transparency International UK, said: “The introduction of UWOs is a significant moment in the fight against dirty money flowing into the UK. They will allow law enforcement to much more easily investigate assets that are highly likely to have been bought using corrupt money, often stolen from populations in some of the poorest parts of the world.”

“From Russia to Nigeria to the Middle East it is no secret that corrupt officials have channelled ill-gotten funds into the UK via the property market”.

Riaz Haq said…
Confessions of an Economic Hitman by John Perkins

https://jamesclear.com/book-summaries/confessions-of-an-economic-hitman

The Book in Three Sentences
The United States is engaging in a modern form of slavery by using the World Bank and other international organizations to offer huge loans to developing nations for construction projects and oil production. On the surface this appears to be generous, but the money is only awarded to a country if it agrees to hire US construction firms, which ensures a select few people get rich. Furthermore, the loans are intentionally too big for any developing nation to repay and this debt burden virtually guarantees the developing nation will support the political interests of the United States.

Confessions of an Economic Hitman summary
This is my book summary of Confessions of an Economic Hitman by John Perkins. My notes are informal and often contain quotes from the book as well as my own thoughts. This summary also includes key lessons and important passages from the book.

“Few swim in riches and the majority drown in poverty, pollution, and violence.”
The top 1 percent of third world households account for 70 to 90 percent of all private financial wealth and real estate ownership in their country.
There are (were?) a famous group of pirates in Indonesia known as the Bugi. They so terrorized early European sailors that the sailors came home and told their children, “Behave yourselves or the Bugimen will get you.” Crazy origin of the phrase.
“The beacon shines on a destiny that is not always one we envision.”
The imperialist and capitalist drive is so strong and so pervasive that it has become the primary cause of most wars, pollution, starvation, species extinctions, and genocides.
Life is composed of a series of coincidences over which we have no control. Once we are presented with such coincidences, we gave choices. How we respond, the actions we take in the face of coincidences, makes all the difference.
How many decisions (including ones of great historical significance that impact millions of people) are made by men and women who are driven by personal motives rather than by a desire to do the right thing?
This book offers a startling reminder that debt is the new form of prison. Entire countries are handicapped by their debt to the United States and other major players.
Lesson: avoid debt at all costs of you want to remain free.
We decry slavery, but our global empire enslaves more people than the Romans and all other colonial powers before us.
Riaz Haq said…
$5 Billion Investment to Boost Pakistan Real Estate, as Major Developers Participate at the Dream Home Expo

https://www.albawaba.com/business/pr/5-billion-investment-boost-pakistan-real-estate-major-developers-participate-dream-home-

UAE-based BMS International Commercial Investment LLC, one of the Royal Group Companies of Sheikh Saeed Bin Khalifa Al Nahyan, has shown interest in investing $3 billion in different economic sectors of Pakistan, with a focus on real estate.

Louai Mohammed Ali, chairman of BMS International Commercial Investment, made the commitment to invest in Pakistan’s real estate development, agriculture and fisheries, energy, hospitality and leisure, healthcare and education sectors.

In December 2017, Egyptian tycoon Naguib Sawiris of Ora Developers and Pakistan’s Saif Group announced investing over $2 billion in real estate ventures in Islamabad.

Pakistan’s near-term outlook for economic growth is broadly favourable, the International Monetary Fund (IMF), said in a recent statement.

“Real GDP is expected to grow by 5.6 percent in FY 2017/18, supported by improved power supply, investment related to the China-Pakistan Economic Corridor (CPEC), strong consumption growth, and ongoing recovery in agriculture. Inflation has remained contained,” the IMF said in a statement in March 2018.

Total Foreign direct investment (FDI) into Pakistan surged 68.9 per cent to $4.45 billion in the nine months of FY2018, according to the central bank data.

With a population of almost 208 million people, Pakistan is suffering a shortage of 12 million houses, said a latest report. Karachi, with its behemothian population of 16.6 million, has an annual shortage of 300,000 houses.

Pakistan’s growing economy supported by its investment sector has remained instrumental to the country’s economic growth over the last five years. With a spend of about $5.2 billion on real estate construction backed up by price correction of up to 20 percent and major advancements in the overall industry dynamics, the property market has enabled strong returns among investors compared to other investment avenues.

Likewise, recent studies have indicated a significant move in the local real estate market of Pakistan towards overseas investment, being identified as one of the largest investors in the International Property Market. Pakistan’s property buyers have increasingly secured homes and investment in Europe, GCC, Canada and UK.

Global real estate transaction value reached $698 billion in 2017, 6 percent above the total transacted in 2016, according to Jones Lang LaSalle, a global real estate advisory. Pakistani investors represented a good chunk of this.

Pakistani nationals have invested Dh24.98 billion in Dubai’s real estate through 19,955 transactions in the last four years (2014-2017), according to Dubai Land Department (DLD) making them the third largest non-Arab investor group by nationality.

DOME Exhibitions in collaboration with Pakistan’s leading media house Jang Media Group is back this year to bring the International Real Estate Investment opportunities in the heart of Pakistan with its much-awaited participation at the Dream Home Expo, Pakistan’s leading property and investment exhibition.

“Pakistanis and Non-Resident Pakistanis (NRP) alike have increasingly been investing within Pakistan and in international markets. Such investors have made their mark in countries across the world, acquiring not just investments but also citizenship opportunities through various investment programs,” said Antoine Georges, Managing Director of DOME Exhibitions, International Pavilion organizer of the exhibition.
Riaz Haq said…
Electronic data exchange between #China and #Pakistan to go live soon to deal with huge discrepancy in #trade figures ($12 billion imports in Pakistan vs $16 billion exports from China in 2017), excise #tax evasion and #MoneyLaundering. #misinvoicing

https://www.thenews.com.pk/print/317155-electronic-data-exchange-with-china-to-go-live-soon

Pakistan is on the verge of launching electronic origin data exchange, which would enable real time recording of trade between the two countries and help curb revenue evasion as well as money laundering, an official said.

Directorate General of Reforms & Automation – Customs has developed the software in this regard and user acceptance testing by Trade Development Authority of Pakistan (TDAP) has also been concluded.

“Presently, the testing of electronic message exchange through the software is in progress between the technical teams of China and Pakistan,” the official said.

The official added that the system, being developed under China-Pakistan free trade agreement (FTA), would be available for live data exchange after the completion of testing.

Imports from China constitute a significant part of Pakistan’s total imports, which opened doors for under-invoicing aimed at revenue evasion as well as over-invoicing aimed at moving out foreign exchange in an organized manner.

Finance Minister Miftah Ismail, in a recent interaction with newsmen, had said the government had detected mass under-invoicing on imports from China. The premier had also said the record at Pakistan Customs reported imports of $12 billion from China last year, while data at Chinese Customs reported exports of $16 billion to Pakistan during the same period.

A trader, requesting anonymity, said under-invoicing and revenue evasion was only a part of the damage, China-Pakistan FTA dealt to the local industry and economy.

Quite recently, Pakistan Customs detected large scale money laundering through gross over invoicing of solar PV panels imported from China, and advocated concerted efforts involving State Bank of Pakistan (SBP) and by extension commercial banks.

Earlier in June last year, Pakistan Solar Association (PSA) in their representation to Customs authorities had shared actionable information regarding money laundering through over-invoicing of solar (photovoltaic) panels and requested investigation into the matter. The investigations had revealed the said goods were being imported into the country from China at double the international market rates.

The official further said the implementation of electronic data exchange between China and Pakistan under Pak China FTA would facilitate trade and help combating commercial frauds.

Riaz Haq said…
#British National #Crime Agency (NCA) warns that #UK remains prime destination for foreign corrupt person and politicians and their families to launder money, with biggest sources of #corrupt investment being #Russia, #Nigeria, #Pakistan. #MoneyLaundering

https://www.theguardian.com/uk-news/2018/may/14/uk-businesses-warned-risk-brexit-driven-crime-surge-national-crime-agency

British businesses are at risk of being drawn into corrupt practices after the UK leaves the European Union in a Brexit-driven surge in crime, law enforcement officials have warned.

UK-based companies looking to increase trade with countries outside the EU are more likely to come into contact with corrupt markets, particularly in the developing world, the National Crime Agency (NCA) said.

Brexit will also provide greater opportunities for criminals to launder money, such as investing dirty cash in British businesses that deal in high-value items such as gems and precious metals, the agency said.

In its annual assessment of serious and organised crime, the NCA said criminals would take advantage of a redesigned customs setup when the UK leaves the EU, as well as any gaps in intelligence-sharing between countries, which could lead to international fugitives evading capture.

“As the UK moves towards exiting the EU in March 2019, UK-based businesses may look to increase the amount of trade they have with non-EU countries,” the report said. “We judge this will increase the likelihood that UK businesses will come into contact with corrupt markets, particularly in the developing world, raising the risk they will be drawn into corrupt practices.”

The NCA said the result of the EU referendum would be “a key driver of uncertainty” in the next five years.


Sign up to our Brexit weekly briefing
Read more
Nikki Holland, the director of investigations for the National Crime Agency, said: “We know the criminals will adapt to what the arrangements are and exploit any loopholes. We think while there is uncertainty … the criminals will be waiting to see what the opportunities and loopholes are, to get their goods across the border during any confusion.”

As well as the NCA, police forces, MI5, MI6, GCHQ, the Border Force, immigration enforcement and the Prison Service all contributed to the assessment.

Law enforcement agencies, including the NCA, have previously warned of the risks to intelligence sharing posed by the vote to leave the EU.

Lynne Owens, the NCA director general, has , including use of the European arrest warrant and membership of Europol, amid concerns about the impact of leaving the EU.


Membership of the EU gives the NCA and UK police forces access to tools that allow them to share intelligence quickly and efficiently with European counterparts.

Before the referendum, former security chiefs, including the former head of MI5 Eliza Manningham-Buller and the former head of MI6 Sir John Sawers, had said that voting remain was in the best interests of the country’s security.

Elsewhere in the report, the NCA warned that the UK remained a prime destination for foreign corrupt and politically exposed people to launder money, with the biggest sources of corrupt investment being Russia, Nigeria and Pakistan.

“Investment in UK property, particularly in London, continues to be an attractive mechanism to launder funds,” the report said.

The NCA said that the scale of money laundering in the UK annually is in the billions of pounds.

The agency also flagged an increase in criminal gunfire on the streets of Britain. The report said the majority of weapons had not been previously used, which suggested an easy flow of illegal weapons into the UK.

Riaz Haq said…
Panama Papers: New leak shows Pak clients struggling to avoid trouble

https://www.thenews.com.pk/print/331641-panama-papers-new-leak-shows-pak-clients-struggling-to-avoid-trouble

A fresh batch of leaked documents of Panamanian law firm, Mossack Fonseca, reveals how panic triggered after the release of Panama Papers among the firm and its clients; several of them were Pakistanis who had to change their plans of hiding wealth abroad amid fear of yet another leak.

A person (Zaka Ashraf) nominated by PPP for interim PM, who had also been chairman of the Pakistan Cricket Board (PCB), abandoned the process of opening two accounts in Swiss banks after the Panama Papers through his two benami shell companies which came to surface earlier but their ownership was unknown.

Former attorney general Justice (R) Malik Qayyum disassociated himself from a benami company. Its Swiss bank account had Qayyum and his wife as signatories. Samina Durrani, the mother of Tehmina Durrani, “gifted” one offshore company holding property in the UK, to Asimullah Durrani, her son, a few months after the release of Panama Papers.

Meanwhile, a Pakistani banker in the Middle East, Saleem Sheikh, was found seeking explanation from the law firm about the steps taken to prevent any embarrassment in future through yet another leak.

Instead of replying to this concern, Mossack Fonseca served him notice in April 2017 together with other Pakistani passport holders having companies in British Virgin Islands to change their registered agent as “an administrative decision has been taken to resign as registered agent/office for companies with links to high risk countries.” Pakistan is among those 21 countries declared prohibited for business by BVI in April 2017. Nielsen and Nescoll, the offshore companies owned by Sharif family had changed their agent in 2014 hence no detail was found in the latest leak.


-----------------

Although Mossack Fonseca announced its closure in March this year, it started resigning in April as registered agent of clients from Pakistan which is “on our current prohibited list of countries.” “Kindly however advise the client that an administrative decision was made after conducting a risk assessment to cease acting as agent for companies associated with Pakistan currently, due to the elevated country risk. “Accordingly, we suggest that they make arrangements to change the registered agent/office of the company soonest,” read an email.

There are another 20 countries which have been declared ‘High Risk’ due to money laundering and terror financing. Pakistan has been flagged due to terror financing. Other high risk countries are Afghanistan, Belarus, Bosnia, Central African Republic, Cuba, Congo, Eretria, Iran, Iraq, Lebanon, Libya, North Korea, Serbia, Sierra Leone, Somalia, South Sudan, Sudan, Syria, Yemen and Zimbabwe.
Riaz Haq said…
#Pakistan Amnesty pulls in Rs 80 billion #tax amid massive response. One #Karachi billionaire declares $1.5 billion in offshore assets.

https://economictimes.indiatimes.com/news/international/business/pakistans-amnesty-scheme-pulls-in-rs-80-billion-in-tax/articleshow/64805560.cms

Nearly 5,000 people in Pakistan have filed returns declaring their foreign assets and deposited approximately Rs 80 billion in taxes so far, as the government's tax amnesty scheme is set to end today.

The final amount will be much higher as more funds are in the pipeline based on payment slips issued.

A Karachi-based billionaire, Habibullah Khan, has declared liquid assets of USD 1.25 billion outside of Pakistan in the single largest amnesty declaration in the country.

Khan is the Founder and Chairman of Mega Conglomerate - Mega and Forbes Group of Companies (Mega Group - MFG), a diversified conglomerate with business holdings.

Khan made his declaration under the tax amnesty scheme announced through an Ordinance on April 10, 2018.

Popular posts from this blog

Economic Comparison Between Bangladesh & Pakistan

Fast Moving Consumer Goods (FMCG) Boom in Pakistan's $152 Billion Retail Market

Dairy Revolution Draws Investors to Pakistan's Agribusiness