Californian almonds are being used in trade-based money laundering (TBML) operations centred on trading across the Line of Control (LoC) between the Indian and Pakistani controlled parts of the former state of Jammu and Kashmir.
The high quality almonds are being used in cross-LoC trade as a means of generating profits that are then allegedly funnelled to terrorists and separatists in Jammu and Kashmir according to Indian officials.
According to the officials, traders on the Pakistani side of the LoC under-invoice Californian almonds amongst other goods in sales to buyers in India.
The invoices show the price of almonds produced in Pakistan, which command a lower price than their Californian counterparts.
After receiving the consignment, traders on the Indian side sell the California almonds at the prevailing market price for the US product and make extra and undue profit due to the under-invoicing.
The extra money generated is handed over by the traders to terrorists, separatists or anti-national elements in the Kashmir valley to fuel anti-India activities, an Indian official claims.
Indian officials also claim that people closely associated with groups proscribed by India as terrorist organisations operate a significant number of trading concerns engaged in cross-LoC trade.
Earlier this month India indefinitely suspended cross-LoC trade at two locations following reports that they were being used to smuggle weapons, narcotics and fake currency across the border.
Categories: Trade Based Financial crimes News