FIA arrests two in Rs533m gold loan fraud case

FIA arrests two in Rs533m gold loan fraud case

The Federal Investigation Agency (FIA) has arrested a bank cashier and an approved goldsmith in connection with an alleged fraud worth more than Rs533 million at a bank branch in Faisalabad district.

According to the FIA, the alleged financial irregularities surfaced during an internal inspection of the bank’s gold financing scheme at its Mamoon Kanjan branch. Investigators discovered that 17 bags containing pledged gold had gone missing, while several other cases involved gold that turned out to be fake, underweight or otherwise failed to match the details recorded in the bank’s loan documents.

The investigation found irregularities in 107 gold loan accounts, raising concerns about the handling and verification of gold pledged against loans. The bank estimates that the alleged fraud caused financial losses of more than Rs533.62 million.

The FIA has registered a case against goldsmith Tahir Mahmood, cashier Muhammad Arshad and another suspect, Abdul Razzaq. Officials have arrested the cashier and the approved goldsmith as part of the ongoing investigation.

Investigators are now examining the records of the affected loan accounts and the procedures followed while assessing and approving the pledged gold. The FIA said it would determine the involvement of other individuals during the course of the investigation.

Authorities are also expected to examine whether the suspects acted alone or worked with others to remove pledged gold, substitute genuine gold with counterfeit or lower-weight items, and facilitate loans against inadequate collateral.

The case highlights serious concerns about oversight and verification procedures within gold financing schemes, where banks provide loans against gold deposited as security. The FIA said further action would follow as investigators establish the full scope of the alleged fraud and identify any additional people involved.