The Federal Investigation Agency (FIA) of Pakistan has arrested two individuals in connection with an alleged network of 11 companies suspected of providing payment infrastructure for illegal online gambling operations. The arrests took place following an investigation into financial transactions linked to platforms such as U7777 Game, TD777 Game, 89F Game, and EPIWIN.
Details of the Investigation
The FIA identified Muhammad Zeeshan and Muhammad Hamza Sarwar as the two suspects taken into custody. According to the agency, Zeeshan was listed as the owner of three companies that together recorded a credit turnover of nearly Rs47.78 billion. Sarwar is accused of developing fake websites to help these companies open corporate payment accounts. The investigation uncovered that eight of the companies were registered under just three individuals and collectively processed over Rs105 billion in credit turnover.
Authorities allege that these companies, which posed as operating in e-commerce, digital marketing, and construction, were actually used to receive and transfer funds related to online gambling. The FIA found that five branchless collection accounts processed approximately 10.5 million transactions worth around Rs8.6 billion.
Complex Financial Routing
The investigation revealed that funds moved through various banking channels before being routed to other accounts, with final settlements sometimes made via unauthorised hawala/hundi systems and cryptocurrency. The FIR also references claims of profit-sharing among those involved, with substantial sums reportedly earned by the suspects, though these claims remain under official scrutiny.
The FIA has registered the case under multiple sections of the Foreign Exchange Regulation Act and the Pakistan Penal Code, as it continues efforts to arrest additional suspects and trace the ultimate beneficiaries of the funds.
Implications for the Industry
This case highlights the risks associated with unregulated payment networks in the iGaming sector, particularly in jurisdictions where online gambling is prohibited. For operators, affiliates, and suppliers, the investigation underscores the importance of compliance with local laws and the potential for significant legal consequences when operating outside regulatory frameworks. Regulators may view this case as a precedent for increased scrutiny and enforcement against both illegal operators and those facilitating their financial transactions.
Key takeaways
- Pakistan's FIA arrested two suspects in a major illegal online gambling payments case.
- Eleven companies allegedly routed gambling funds under the guise of legitimate businesses.
- Authorities are investigating complex financial flows involving banking, hawala, and cryptocurrency.
- The case signals heightened regulatory attention to payment networks supporting illegal iGaming.