Illegal money awaits match decision

KARACHI, March 29: How money works during the Cricket World Cup is not known even to currency dealers although a huge speculative amount of over $1 billion is said to have been involved in betting for the semi-final between Pakistan and India being played in Mohali on Wednesday. Several currency dealers said they knew some big shots involved in betting who worked as agents for main gamblers sitting in Dubai and Mumbai. The currency market on Tuesday did not reflect any trend of buying or selling US dollars which would be used to make settlements after the decision of the match. "We know nothing about this kind of transactions. The betting people will never come to us as we do legal business," said Malik Bostan, president of the Forex Association of Pakistan. He said people involved in betting might have their own illegal network for transaction. Another money changer said there would be large-scale transfer of money in or outside Pakistan once the Mohali match was decided. A few will gain while thousands will lose. There is no restriction on transaction of foreign currency from Pakistan but a large transaction requires identification and purpose under the rule set by the State Bank of Pakistan. Dollar transfer is legal, but in case of India many travellers use hawala system because no direct banking exists between the two countries. "I know huge transactions will take place after the match decision but no official channel will be used," said currency expert Anwar Jamal. He denied having knowledge about `other channels` of transaction of money from Karachi to Mumbai. "I got information from Dubai that the UAE Central Bank had asked banks to keep a check on large transactions," said Mr Jamal. Some Pakistani bankers said they had no specific instructions from the State Bank in this regard mainly because all transactions were identified and destinations of outflows were mentioned. They said there was no need to issue such instructions in Pakistan. Currency dealers said their market would not reflect any sign of loss or gain in betting in the Mohali semi-final but one would have some indications later. "The illegally earned money would not be deposited in banks or be sold in the market immediately. Slowly and gradually it would become part of the formal economy," said a banker.