FIA Seeks Details of Summit Bank’s Equity Over Money Laundering Case

The Federal Investigation Agency (FIA) has approached State Bank of Pakistan (SBP) and Security Exchange Company of Pakistan (SECP) seeking details of Summit Bank’s equity and names of CEOs of Zardari Group and Omni firm.

This development by the federal body has been launched following the directives of Supreme Court, which has taken a suo motu notice of alleged money laundering of whopping Rs. 35 billion after a total of 29 ‘fake’ bank accounts were opened in three banks — Summit Bank, Sindh Bank and United Bank Ltd.

The FIA reported that the money was transferred in the accounts of the firms of a United Arab Emirates national Nasser Abdulla Hussain Lootah, who is the chairman of the Summit Bank’s board of directors.

Lootah is considered to be a major beneficiary of these suspicious transactions, as Rs7 billion were transferred to his account, according to the sources. Lootah is said to hold 58 per cent shares in Summit Bank.

As per details the UAE national was supposed to submit Rs17 billion as equity, while Rs7 billion were transferred into his account apparently for this purpose. However, now these Rs7 billion have been frozen under the directions of the Supreme Court in order to prevent the same from turning into equity of the bank.

The three-judge bench on Sunday, headed by Chief Justice Mian Saqib Nisar, summoned the CEOs and presidents of the Summit Bank, Sindh Bank and United Bank Limited (UBL) and others mentioned in the FIR registered by the Federal Investigation Agency (FIA) over money laundering charges.

After the Supreme Court’s order of summoning heads of three private banks in a case about suspicious transactions, FIA also named former president Asif Ali Zardari and his sister Faryal Talpur as beneficiaries in a money-laundering case as members of the Zardari Pvt Ltd.

Hussain Lawai, chairman of Pakistan Stock Exchange and a close aide of PPP co-chairman Asif Zardari, was also taken into custody.

Lootah being a foreign national, was supposed to bring money from abroad.

The FIA clarified from SBP as to whether a foreign national may maintain equity of the bank locally in view of the concerned laws and SBP’s policy.

Separately, the FIA has also approached SECP to provide details about CEOs and account operators of the beneficiary firms during the specific time when this suspicious transaction was made in order to issue notices to them in light of directions of the apex court to expedite the probe.

SBP Order

Whereas in a bid to pacify account holders at Summit Bank, the State Bank of Pakistan (SBP) has said that the Supreme Court order will not affect regular operations of the institution or affect depositors’ money.

“The instructions provided in the order in no way pertain to the regular operations of the Summit bank or affect the depositors money,” stated the central bank in a statement released on Monday night.

“The said bank is working in a normal manner and meeting its obligations towards depositors. All rumors circulating in the media, particularly social media, about Summit Bank are baseless and misleading. The public in general and depositors of the Summit Bank, in particular, are advised not to pay attention to such rumors.”