Concern over Pak couple buying UK properties after becoming politically exposed in 2013

LONDON: Concerns have been expressed that former Pakistani government official Farhan Junejo and his wife were able to buy expensive properties in Britain after their names and identities were widely publicised linked with the alleged corruption in Pakistan and made public after an investigation by Pakistan’s Federal Investigation Agency (FIA).Its understood that Farhan Junejo and his wife Binish Qureshi bought properties in Britain – now being investigated by the National Crime Agency (NCA) – months after fleeing Pakistan while the investigation was active and the couple had become Politically Exposed Persons (PEPs) and investigators in Britain informed about their status as absconders of Pakistani law.On September 24, 2013 this newspaper published a detailed report on how Farhan Junejo, while working with PPP’s then minister Amin Faheem in the Pakistan People’s Party government, was involved in corruption of tens of millions through hundi and hawala. The News had exposed that the alleged “proceeds of crime” have been transmitted abroad in five accounts in Dubai, Switzerland, the US and Britain.Anti corruption campaigners have said that this case highlights major weaknesses in Britain's anti-money laundering system.The National Crime Agency (NCA) officers arrested the couple on Monday and released them on bail - hours after Home Secretary Sajid Javid struck an agreement to cooperate with Pakistan on countering corruption and to step up action against money laundering. The NCA said they "control a UK property portfolio worth more than £8m for which they appear to have no legitimate source of income” and that the "alleged money laundering in the United Kingdom believed to be the result of corruption in Pakistan”.Evidence shows that Farhan Junejo and his wife bought these properties after the FIA had launched a major probe into the scam in early 2013 accused of multi-million pound corruption. Pakistani authorities froze his assets after launching the investigation. Farhan Junejo sent money abroad to various countries and all of that then landed into UK bank accounts held directly by Binish Qureshi or jointly by the couple. Anti-corruption campaigners have said that Pakistan had already contacted the UK about the couple but the couple were able to buy properties in Surrey, south of England. UK’s Anti-Money Laundering Regulations state that the PEPs are individuals – including their relatives and dependants - whose prominent position in public life may make them vulnerable to corruption and financial crimes. Its expected that the PEPs should be subjected to enhanced due diligence by banks, building societies and estate agents during the purchase of properties. The PEPs are asked a range of questions and the banking societies may ask them to show income proof going back to at least six years. Anti-money laundering checks are carried out by the solicitors while processing the claims of their clients when buying properties. The solicitors in England and Wales have a legal duty to file a suspicious activity report (SAR) when they reasons to suspect they are being asked to handle the proceeds of crime. "Corruption allegations against politically exposed persons are a big red flag and it's astonishing that these individuals were able to purchase numerous properties, open UK companies and set up multiple bank accounts," said Rachel Davies-Teka, Head of Advocacy at Transparency International."It underlines just how lax defences against money laundering in key sectors have been, and why the UK remains a destination of choice for those looking to hide dirty money."Land Registry papers show that FJ Corporation Limited - owned by Mrs Qureshi - bought three properties worth a total of £3.5m. The same company paid for two properties in Berkshire. These properties were acquired between 2014 and 2017 – after the couple had become PEPs and the FIA investigation and its findings into them and their relatives were known widely and available publicly.Campaigners have hoped that the signing of an agreement between the UK and Pakistan against money-laundering is designed to ensure evidence is shared between anti-corruption and money laundering investigators in both countries.

from The News International - World https://ift.tt/2O0zKqa

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