Zarco Exchange
| Private Limited | |
| Industry | Financial services |
| Founded | Lahore, Pakistan (1997) |
| Headquarters | Karachi, Lahore and many other cities Pakistan |
Key people | Sayd Lakht-e-Hussnain (CEO) |
| Revenue | $18 Million USD (2009) |
Number of employees | At least 900 persons |
| Website | www.zarcoexchange.com |
Zarco Exchange international is a foreign exchange company based in Lahore. It is one of the largest Western Union agents for Pakistan of and in 2009 the company was ranked 2nd largest nationwide after Khanani and Kalia International(KKI).
In 2009 it became involved in the Pakistan Forex Scam Case after it was implicated by the Pakistani government, this resulted in its license being withdrawn and a number of allegations made against its directors and manager in relation to money laundering. However the courts eventually cleared the company and all the accused and its license was restored in 2011, after which the company resumed trading.[1]
Operations
Zarco Exchange has a large scale network of office nationwide. The company had working relationships and acts as agent for companies like Western Union, PayPal and Webmoney. The company also introduced its own Visa traveler cheques and other financial products.
History
2009 fraud allegations and license suspension
In August 2009 Zarco became the second forex company to be closed after Khanani and Kalia in what became known as the Pakistan Forex Scam Case when Pakistan Finance ministry accused Zarco of Money Laundering, illegal money transfers to other countries. The State Bank of Pakistan suspended its license. More than 3500 of its employees had to stay home as company was forced to close all its 727 offices.[2]
An investigation by the Pakistan Federal Investigation Agency (FIA) raised a number of allegations of fraud. On 7 August 2009 the FIA raided and closed all Zarco 727 Exchange outlets in Pakistan.[3]
Zarco Exchange CEO, Sayd Lakht-e-Hussnain denied being involved in any fraud and a complex legal dispute followed resulting in claim and counter claim of fraud and deception by the State Bank of Pakistan and Zarco and its management.[4]
In Dec 2010, The Special Court (offences in banking) Lahore said it saw no reason that Zarco should not request a revival of its license from the State Bank of Pakistan.[5]
In Feb 2011 Sayd Lakht-e-Hassnain was released by the FIA after it decided to no longer pursue the case.[1]
In response to the judgment by the The Special Court (offences in banking) Lahore by April 2011 the State Bank of Pakistan had reinstated Zarco Exchange's licenses and Zarco Exchange restarted its operations.
See also
References
- 1 2 "Man accused of illegal Rs67b transfer freed". The Express Tribune. February 8, 2011.
- ↑ "State Bank of Pakistan suspends license of Zarco Exchange". TrendPK. August 10, 2009.
- ↑ "FIA raids, seals Zarco Exchange Company outlets across Pakistan". chowrangi.com. August 8, 2009.
- ↑ "LHC CJ reserves judgement in ZARCO fraud case". Daily Times. September 9, 2009.
- ↑ "Company update". Zarco. December 2010.