This article published in ‘Dawn’ last year not only
describes the K&K case clearly but at that highlights some of the
underlying issues in Pakistan. A large informal economy, a tradition of sending
money abroad and widespread use of hawala networks are the 3 basic factors. Then
there’s a widespread use of over- and under-invoicing and the use of other
Trade Based Money Laundering techniques involved. Add to that the difficulty to
actually prove the money transferred is related to crime and you have a recipe
for the disaster described.
A question that comes to mind though is: would a proper country
risk assessments have revealed these issues? And: wouldn’t it make sense to do
a risk assessment at country level in other counties were similar situations
are expected? Just to prevent cases like this.
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