The State Bank of Pakistan (SBP) in Karachi has received a deluge of complaints from expatriates in the Kingdom who have been victims of fraudulent banking and investment related activities and schemes. “Usually, the complainants report being cheated by fraudulent activities and schemes, in which the scheme operators offer lucrative profits, thereby luring the general public to become rich overnight,” Beenish Saleem, deputy director of the Registration Department, SBP, Islamabad, said in an exclusive interview with Saudi Gazette. Bank authorities have warned the public to beware of fraudulent individuals, companies, non-corporate entities, agents, brochures, websites, emails and hoardings, etc., providing misleading information on bank activities, schemes of deposits, loans, and investments. Seconding Saleem, Jamil Abdul Nasir Daudpota, joint director of the Banking Policy and Regulations Department at the SBP, Karachi, said he too receives many complaints by email and telephone from Pakistani nationals living abroad alleging fraud. SBP officials said the SBP, the Pakistani Ministry of Finance and the Ministry of Overseas Pakistanis have recently undertaken a joint initiative called ‘Pakistan Remittance Initiative (PRI)' to facilitate the flow of remittances through formal channels. They said the initiative has started to materialize and such remittances are showing considerable growth. An official from the Bank Al-Bilad said the remittances of overseas Pakistanis continued to show a rising trend, adding that $3,832.64 million were received in the first five months (July–Nov.) of the current fiscal year (2009–10). “Our bank statements show an increase of $866.13 million or 29.2 percent over the same period of the last fiscal year. The amount of $3,832.64 million includes $930,000 received through encashment and profit earned on Foreign Exchange Bearer Certificates (FEBCs) and Foreign Currency Bearer Certificates (FCBCs),” the bank official said, requesting anonymity. In November last year, an amount of $742.79 million was sent home by overseas Pakistanis, up 19.7 percent or $122.27 million, when compared with $620.52 million received in the same month last year. “The SECP and the SBP jointly issue constant public warnings through campaigns in newspapers in order to create awareness on legal investment opportunities for Pakistanis at home and abroad. The SECP also issues a newsletter for the same purpose,” said Saleem. “The public should be very careful when investing in such activities or schemes. They must check the status of these companies or individuals from the respective regulators before making an investment,” said Saleem. She advised the general public to be prudent while making any investments and to verify that the entity they are dealing with is duly authorized or licensed by the relevant authority to conduct business. “Appropriate advice from independent legal or financial professionals regarding the risks involved is advisable. The list of entities licensed by the SBP and the SECP is available on their respective websites. For further clarification in respect of these entities, one may contact officials at the SBP or the SECP,” added Saleem.
