Billions in Money Laundering Discovered Under the Guise of Solar Panels Import

A major money laundering scandal has been uncovered involving solar panels, where billions of rupees were transferred to multiple countries, including the UAE, Singapore, Switzerland, the USA, Australia, Germany, Canada, South Korea, Sri Lanka, and the UK, despite the solar panels being imported from China.

During a meeting of the Senate Standing Committee on Finance, chaired by Senator Mohsin Aziz, the issue of money laundering under the cover of solar panels was discussed.

According to the Federal Board of Revenue (FBR), from 2017 to 2022, over-invoicing of Rs 69.5 billion was detected in solar panels. The panels were imported from China, but payments were made to 10 other countries, including the UAE, Singapore, and the USA.

FBR officials informed the committee that a total of Rs 117 billion was sent abroad under the pretext of solar panel imports. Despite the panels being sourced from China, the funds were illegally transferred to other countries, which is against the law.

The countries involved in the illegal transfers included the UAE, Singapore, Switzerland, the USA, Australia, Germany, Canada, South Korea, Sri Lanka, and the UK.

FBR officials further explained that 63 importer companies have been shortlisted for over-invoicing investigations, and 13 FIRs have already been filed. The primary motive behind the over-invoicing was money laundering. One company imported solar panels worth Rs 47 billion and sold them for Rs 42 billion.

According to FBR officials, the import of solar panels was duty-free, and companies like Bright Star sent Rs 42 billion abroad. Other countries saw over Rs 18 billion in transfers.

**”There is no doubt, money laundering occurred”**

During the meeting, Mohsin Aziz, Convenor of the Subcommittee, stated that there is no doubt that money laundering took place. He raised concerns about how companies with a paid-up capital of only Rs 20 lakh were conducting business worth Rs 50 billion, while another company with Rs 1 crore in paid-up capital was involved in business worth Rs 40 billion. He questioned how banks opened accounts for these companies and whether proper checks were conducted.

Mohsin Aziz further stated that a detailed investigation will be carried out, and a report will be compiled. The State Bank has not yet submitted its report on the matter.

During the meeting, the Deputy Governor of the State Bank revealed that banks have been fined over Rs 200 million. He added that banks are not aware of the quality or price of imported goods; it is the responsibility of the FBR to determine the price of imports.