Illegal money changers making a killing
By Mattia Michielan
Money changers in Bangalore are illegally converting currency for customers at rates that are higher than the current foreign exchange rates.
This is always done without issuing receipts, adding to the rising amounts of black money in the system.
“We have a legal license and pay taxes to the Reserve Bank of India,” said Zamir, the owner of the Multi Foreign Exchange on Church Street.
“But while one euro can be changed to give Rs.55.85, on the street, you could get Rs.58 to Rs. 60,” he said.
Licensed money changers, like Zamir, offer these “services” at an extra fee of Rs.25 for each transaction. Getting a receipt, however, is out of the question.
Money laundered through gold deals
Meanwhile, there are a number of unlicensed operators who challenge these prices, offering to do better.
“I can give you more than the Foreign Exchange Dealers’ Association of India [FEDAI] offices,” said Venkateshwara, a jeweler from Raja Market, who approaches customers outside FEDAI offices on Church Street.
He offers Rs.62 for one euro and has even found a way to clean up the black money he makes on these deals.
“I reinvest the money I make from each transaction in gold, when the prices fall. This is usually done in South Africa or Dubai, where gold is tax free,” he added.
Police refused to comment on the issue.
Money changers in Bangalore are illegally converting currency for customers at rates that are higher than the current foreign exchange rates.
This is always done without issuing receipts, adding to the rising amounts of black money in the system.
“We have a legal license and pay taxes to the Reserve Bank of India,” said Zamir, the owner of the Multi Foreign Exchange on Church Street.
“But while one euro can be changed to give Rs.55.85, on the street, you could get Rs.58 to Rs. 60,” he said.
Licensed money changers, like Zamir, offer these “services” at an extra fee of Rs.25 for each transaction. Getting a receipt, however, is out of the question.
Money laundered through gold deals
Meanwhile, there are a number of unlicensed operators who challenge these prices, offering to do better.
“I can give you more than the Foreign Exchange Dealers’ Association of India [FEDAI] offices,” said Venkateshwara, a jeweler from Raja Market, who approaches customers outside FEDAI offices on Church Street.
He offers Rs.62 for one euro and has even found a way to clean up the black money he makes on these deals.
“I reinvest the money I make from each transaction in gold, when the prices fall. This is usually done in South Africa or Dubai, where gold is tax free,” he added.
Police refused to comment on the issue.
To read more about a similar foreign exchange scam that operates across the country click here.
Interestingggggg! :)
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