International Forex frauds and irregularities: Pakistan, Nigeria and Sri Lanka

Looks like Forex is in the center of several frauds and irregularities worldwide and that the amounts involved are increasing.

forexfraudLooks like Forex is in the center of several frauds and irregularities worldwide and that the amounts involved are increasing. This certainly doesn’t contribute to the credibility of the Forex industry as a whole:

In Nigeria:

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The Central Bank (CBN) will, this week, withdraw the foreign exchange authorized dealership of three banks and suspend them from the foreign exchange market for three months for engaging in foreign exchange speculation. Vanguard was reliably informed that the banks (names withheld) were found to be buying foreign exchange at the Wholesale Dutch Auction System (WDAS) for the purpose of speculation.

A reliable source told Vanguard that investigation by the CBN revealed that each of the banks bought about $200 million thrice. These purchases, it was discovered, were not based on genuine demand but were warehoused in anticipation of further depreciation of the naira.

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In Pakistan:

LAHORE-Civil Lines police unearthed another big financial scam of Rs 1.25 billion (equal to $15 million) and arrested nine employees of a local money exchange company for their alleged involvement in the embezzlement of the money. The police sources said that the arrested persons were the executive members of the ZARCO Money Exchange Company located at Lawrence Road near The Mall.

A police team headed by SHO Taimur Malik arrested the alleged accused when they were preparing to escape from the country.

The police team also recovered passports and other travelling documents from their possession, the sources claimed. The arrested employees were accused of misappropriating Rs 1.25 billion from the company in connivance with three other employees who are still at large.

In Sri Lanka:

Details of an alleged foreign exchange fraud of $1.1 million by Ceylinco Shriram Ltd when purchasing a building for Ceylinco Real Estate Holdings LLC USA has been revealed to the Attorney General’s Department, the CID and the Foreign Ministry to take necessary action, AG’s Department sources said. It is alleged that Hiran de Silva, Deputy Chief Executive Director, Ceylinco Shriram had wired the money to a US bank account held by US-based Ceylinco company without following exchange control regulations.

International Forex frauds and irregularities: Pakistan, Nigeria and Sri Lanka
Looks like Forex is in the center of several frauds and irregularities worldwide and that the amounts involved are increasing. This certainly doesn’t contribute to the credibility of the Forex industry as a whole:
In Nigeria:
The Central Bank (CBN) will, this week, withdraw the foreign exchange authorized dealership of three banks and suspend them from the foreign exchange market for three months for engaging in foreign exchange speculation. Vanguard was reliably informed that the banks (names withheld) were found to be buying foreign exchange at the Wholesale Dutch Auction System (WDAS) for the purpose of speculation.
A reliable source told Vanguard that investigation by the CBN revealed that each of the banks bought about $200 million thrice. These purchases, it was discovered, were not based on genuine demand but were warehoused in anticipation of further depreciation of the naira.
http://www.vanguardngr.com/2009/08/03/3-banks-face-cbns-sanctions-over-forex-scam/
In Pakistan:
LAHORE-Civil Lines police unearthed another big financial scam of Rs 1.25 billion (equal to $15 million) and arrested nine employees of a local money exchange company for their alleged involvement in the embezzlement of the money. The police sources said that the arrested persons were the executive members of the ZARCO Money Exchange Company located at Lawrence Road near The Mall.
A police team headed by SHO Taimur Malik arrested the alleged accused when they were preparing to escape from the country.
The police team also recovered passports and other travelling documents from their possession, the sources claimed. The arrested employees were accused of misappropriating Rs 1.25 billion from the company in connivance with three other employees who are still at large.
http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Politics/02-Aug-2009/9-employees-of-forex-firm-arrested
In Sri Lanka:
Details of an alleged foreign exchange fraud of $1.1 million by Ceylinco Shriram Ltd when purchasing a building for Ceylinco Real Estate Holdings LLC USA has been revealed to the Attorney General’s Department, the CID and the Foreign Ministry to take necessary action, AG’s Department sources said. It is alleged that Hiran de Silva, Deputy Chief Executive Director, Ceylinco Shriram had wired the money to a US bank account held by US-based Ceylinco company without following exchange control regulations. http://www.sundaytimes.lk/090802/FinancialTimes/ft312.html
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