The Federal Investigation Agency (FIA) sealed a firm in Rawalpindi and detained nine people involved in the illegal practice as part of their ongoing campaign against illicit financing organizations that deal in short-term internet lending, The News reported.
According to FIA sources, the authority's Cybercrime Circle started the crackdown on those who provided online loans to people experiencing tough economic situations and then used blackmail to collect enormous quantities of money from them.
A similar occurrence happened last week in Rawalpindi, when an unemployed man, a father of two, committed suicide.
The crackdown on illicit funding businesses was initially started in Islamabad, Rawalpindi, and Lahore and will progressively be spread throughout all of Pakistan, according to FIA Director General (DG) Mohsin Hassan Butt.
The crackdown will start in Karachi next week, according to the FIA DG. "The FIA Karachi office has been directed to complete initial preparations for the operation," he continued.
According to the official, FIA teams were confirming that financial organizations had been registered with the Security Exchange Commission of Pakistan (SECP), and those without a registration certificate would be deemed unlawful.
In addition, he said that the SECP served as the registration and regulating body that granted Non-Banking Financial Companies (NBFC) licenses to provide loans via the web app.
Additionally, the Pakistan Telecommunication Authority (PTA) collaborates with Google and Apple to have microfinance programs that are used illegally in Pakistan taken down.
"A crackdown is in progress, and if any victims who have been bullied or harassed by the corporation because of loan sharking come forward, action will be taken.
According to Mohsin Butt, "the FIA is taking action against all companies breaking the SECP regulation and those not registered."
The FIA Cybercrime Circle also conducted a raid on a financial services office in Rawalpindi's Saidpur Road.
Inspector Badar Munir shut down numerous offices of businesses in the plaza, according to an FIA official.
An FIA official stated that cases have been filed against 19 suspects about online loan applications.
According to FIA sources, the authority's Cybercrime Circle started the crackdown on those who provided online loans to people experiencing tough economic situations and then used blackmail to collect enormous quantities of money from them.
A similar occurrence happened last week in Rawalpindi, when an unemployed man, a father of two, committed suicide.
The crackdown on illicit funding businesses was initially started in Islamabad, Rawalpindi, and Lahore and will progressively be spread throughout all of Pakistan, according to FIA Director General (DG) Mohsin Hassan Butt.
The crackdown will start in Karachi next week, according to the FIA DG. "The FIA Karachi office has been directed to complete initial preparations for the operation," he continued.
According to the official, FIA teams were confirming that financial organizations had been registered with the Security Exchange Commission of Pakistan (SECP), and those without a registration certificate would be deemed unlawful.
In addition, he said that the SECP served as the registration and regulating body that granted Non-Banking Financial Companies (NBFC) licenses to provide loans via the web app.
Additionally, the Pakistan Telecommunication Authority (PTA) collaborates with Google and Apple to have microfinance programs that are used illegally in Pakistan taken down.
"A crackdown is in progress, and if any victims who have been bullied or harassed by the corporation because of loan sharking come forward, action will be taken.
According to Mohsin Butt, "the FIA is taking action against all companies breaking the SECP regulation and those not registered."
The FIA Cybercrime Circle also conducted a raid on a financial services office in Rawalpindi's Saidpur Road.
Inspector Badar Munir shut down numerous offices of businesses in the plaza, according to an FIA official.
An FIA official stated that cases have been filed against 19 suspects about online loan applications.