Pakistanis probed for illegal money transfers

Police have apprehended a Pakistani man for helping his compatriots working in South Korea illegally transfer money to their families in Pakistan.

Some 400 Pakistani migrant workers sent a total of 22.7 billion won ($20.5 million) over the past three years through the 32-year-old, surnamed Ikram.

Thirteen other Pakistanis and five South Koreans are also being investigated for collaborating with Ikram. Five of the Pakistanis fled and are being traced, according to the Seoul Metropolitan Police Agency (SMPA), Thursday.

The workers sent money through Ikram, instead of banks, to save incurring currency exchange fees. He used a company operated by his friends in Pakistan.

After receiving money through a false-name bank account, Ikram had the firm remit money to their families. He then bought used computers with the money and shipped them to Pakistan. The firm sold the computers to secure cash.

Ikram and his collaborators received fees amounting to some 120 million won for transferring money to the families, police said.

Officers suspect there could be similar fraud cases involving migrant workers from other countries. Nearly 700,000 migrant workers, mostly from Southeast Asia and China, are working in South Korea, according to the Justice Ministry. The exact number may exceed 1 million considering those who are overstaying their visas.

“Foreign workers should pay high currency exchange and money transfer fees to send money through banks. That’s because they are tempted to use unlawful channels,” the SMPA said in a press release. “Some of them don’t use banks because they do not want to expose their identities in the process of setting up bank accounts and sending remittances.”

Police suspect there are many private currency exchange shops that are helping foreigners illegally transmit money overseas.

Ikram is known to have attracted “customers” through mobile text messages. He had collaborators in industrial zones nationwide where there are many Pakistani workers, police said. <The Korea Times/Na Jeong-ju>