FinCEN documents connect money laundering network in Pakistan to Dawood Ibrahim's financier: Report

Along with massive amounts of illegal funds funnelled through global banks, US regulatory agency Financial Crimes Enforcement Network (FinCEN) has also unearthed a money laundering network run by Altaf Khanani, a Pakistani national, who allegedly is a key financeer of the 1992 Bombay blast accused Dawood Ibrahim, The Indian Express reported.

Suspicious Activity Reports (SARs) filed by Standard Chartered, New York found that Khanani's organisation moved approximately $14 billion-$16 billion in a year to fund drug cartels and terror organistaions like Al-Qaeda, Hezbollah and Taliban, according to the IE report.

The US Office of Foreign Assets Control (OFAC) documented Khanani's relationship with Ibrahim after Khanani's arrest at the Panama Airport following a trans-continental operation in 2015, the report said.

Khanani's arrest was a major breakthrough for Indian intelligence agencies owing to his alleged links to Dawood Ibrahim and that Lashkar-e-Toiba and Jaish-e-Mohammed were specificaly mentioned by the OFAC as terror organisations funded by him.

Also Read: Global banks like HSBC, JPMorgan Chase, Standard Chartered moved illicit funds, FinCen documents show

In a sanction notice, OFAC said, "Khanani's money laundering organisation exploits its relationships with financial institutions to funnel billions of dollars across the globe on behalf of terrorists, drug traffickers and criminal organisations… Altaf Khanani, the head of the Khanani MLO (money laundering organisation) and Al Zarooni Exchange have been involved in the movement of funds for the Taliban, and Altaf Khanani is known to have had relationships with Lashkar-e-Tayiba, Dawood Ibrahim, al-Qaida and Jaish-e-Mohammed.”

A year later, OFAC released another notice listing inidividuals and entities that linked Khanani's family and relatives who reportedly supported his money laundering network.

One of the top entities on the list was Dubai-based Mazaka General Trading LLC.

OFAC found that the Mazaka General Trading "materially assisted, sponsored or supported the Khanani Money Laundering Organisation, which launders illicit funds for terrorists, drug traffickers and criminal organisations…" and the FinCEN ducuments reveal the extent of financial infiltration of Khalnani's money laundering organisation via Mazaka Trading as well as others linked to “Moscow Mirror Network.”

The Mazaka General Trading LLC was also linked to an Indian garment exporter called Rangoli International Pvt Ltd.

The FinCEN files noted that this company routed its money to UAE-based companies through banks like the Punjab National Bank, Central Bank of India, Oriental Bank of Commerce, and Bank of Maharashtra.

Khanani's detention ended in July 2020 and it remains unclear whether he has been deported to Pakistan or the UAE, the report cited.