Money laundering through duty-free vehicle purchases

 Tuesday, 25 February 2014 

Central Bank and Customs officials have found the money launderers are paying premium prices to purchase duty-free vehicle permits.

The trend has reportedly come to light at a top level conference of Central Bank and Customs officials.

Officials from the two institutions have discussed whether advertising of such permits should be banned.

A local media report states that a duty-free permit to import a vehicle now fetches a profit of between Rs. 800,000 and Rs. 1 million.

“We are trying to prevent persons buying vehicle permits in large numbers and giving legitimacy to their undeclared money,” a senior Central Bank official has been quoted as saying.

He has said that if investigations reveal that anyone had been involved in money laundering legal action would be taken.

The government offers more than 5,000 duty-free permits to ministers, MPs, senior officials, provincial council ministers and religious dignitaries. However after the government relaxed the regulation enabling permit-holders to sell their permits most of them have opted to do so.

The Central Bank has directed the Customs to keep a close watch on those importing vehicles on duty-free permits.