The London-France connect that led to Moin Qureshi’s dirty money

After spending a year, untangling the secret financial web of the well-connected Kanpur-based businessman, the I-T team, which combed through thousands of documents, unravelled a money trail that went through Dubai to Hong Kong, Singapore, London, British Virgin Islands and the Seychelles, top sources told DNA.

Painstakingly combining information from all six locations, investigators had been gathering documents since the summer of 2014 to expose Qureshi, who is being investigated by multiple agencies for money-laundering.

But it was the £3.85-million (approximately Rs 32 crore) flat in London’s tony Mayfair locality and French architect Jean Lous Deniot that proved to be his final undoing. It was the key investigation point that led to the larger money-laundering conspiracy, an official said.

Asked to furnish details of bank accounts in India and abroad, Qureshi had said in his initial statement on February 15, 2014, the day his premises were raided, that he didn’t have any assets or accounts abroad. He also told investigators that he and his family had an account only with HSBC Bank in South Extension, New Delhi.

However, investigators retrieved his BBM messages discussing details about the property — Flat no 4, Chesterfield House, South Audley Street — with Deniot.

On further probe, Qureshi said that the property was owned by his in-laws and he had no idea about payments made to the French architect. Documents reveal that the tax authorities called Qureshi once again on June 13, 2014, to ask about payments to Deniot. He said the flat in London had not been designed by Deniot but accepted that the architect had given some inputs about its renovation.

The link was established on the basis of information provided by Singapore authorities that showed Deniot being paid consultancy fees by Bulova Holdings Ltd. The payment was made through account number 61128131 of Bulova Holdings. Qureshi was established to be a beneficiary owner of Bulova Holdings Ltd and had submitted his identity proof in March 2013 and September 2014 to open this account.

The I-T Department, officials said, also found evidence that Qureshi had authorised the board of directors of Bulova Holdings to purchase the Mayfair flat.

Barro Holdings Ltd

Besides Bulova, which was incorporated in British Virgin Islands (BVI) on February 22, 2012, Qureshi is the beneficial owner of another foreign entity — Barro Holdings Ltd, incorporated in Victoria Mahe, Seychelles, on June 16, 2011. Both have accounts in the Singapore and Hong Kong branches of BSI Bank and share common directorship of Arcas Holdings Ltd and Somas Group SA.

Investigations revealed that Barro Holdings had authorised Qureshi as an attorney to manage all assets deposited at any time for the account in BSI Bank. Qureshi, mentioned in the verification form as beneficial owner, had also signed on the particular form on June 29, 2011, as an attorney. His passport, too, was attached to the form and certified by BSI account officer Tushar Shekhawat.

Much of the information revealed by the documents relate to the Singapore branch of BSI Bank.

The KYC form of BSI Bank has also revealed that the account was to be used to capture money that Qureshi would receive offshore. It was also mentioned that Barro was a Seychelles-based company set up by the beneficial owner with Arcas Holdings and Somas Group SA as nominee directors.

Mail exchanges between BSI employees Shekhawat and Yeo Gavin reveal Qureshi’s involvement in opening the bank account. Shekhawat’s visit report confirms that Qureshi wanted to set up a company in Seychelles, which he could use as an offshore investment holding company.

The Hong Kong connect

Barro Holdings and Bulova Holdings have accounts in Hong Kong, too. Documents show that a company called, Francatina Inc BVI, a nominee company, 100 per cent held by Orbis Consulting Trust, was allotted 10,000 shares of Bulova Holdings Ltd for $10,000 (approximately Rs 7 lakh).

Hong Kong authorities also confirmed that the registered office address of Bulova Holdings was PO Box 967, Offshore Incorporation Centre, Totola, BVI. However, in documents, in records books and minutes of Bulova, the Singapore address has been maintained.

Various entities have deposited $923.3 million worth of funds in Barro Holdings’s account (no 6C03122) at BSI Bank Singapore, from July 27, 2011, to April 2 2013.

Barro Holdings Ltd also received $4.34 million (approximately Rs 29 crore) in a different account. Most of this amount was transferred to Bulova Holdings account (61128131). These funds have been used to buy the London flat.

How the ultra rich use tax havens

Mr X is the CEO of an Indian company and he wants to hide $200 million. He will use Singapore, or Hong Kong-based banks for this. It will be done in three steps.

First, Mr X will create an anonymous shell company in places known as tax havens like the British Virgin Islands (BVI), where the company ownership is almost hidden. Shell companies in tax havens are cheap, rapid and safe.

Second, he will open bank accounts in places like Singapore or Hong Kong under the shell company’s name. More than 50 per cent accounts in Switzerland, Hong Kong or Singapore are held through intermediaries of shell companies headquartered in places like British Virgin Islands, trusts registered in the Cayman Islands or foundations domiciled in Liechtenstein.

Third, Mr X or his company will buy fictitious services like consulting from the British Virgin Islands shell company. To pay for these services, money will be sent to the shell company’s account. The transaction generates a paper trail that appears legitimate.

Once the money has been deposited in these bank’s accounts, it could be easily invested in global financial stocks or property.