Z2C Limited under probe as CFO arrested by FIA over ‘hundi transfers’

2026-02-26 - 20:03

KARACHI – A sudden raid by Federal Investigation Agency landed the chief financial officer of Z2C Limited in custody over allegations of moving millions abroad through informal transfer channels. Authorities claim the funds were routed via a hawala network, triggering an internal suspension and widening investigation that has sent ripples through Pakistan’s advertising and media sector. The federal investigators announced what it described as a “major operation” that led to the arrest of the Chief Financial Officer of Z2C Limited over the alleged illegal transfer of 9 million UAE dirhams, roughly Rs735 million. FIA said a hawala/hundi network was unearthed during the probe. The agency stated that a “well-known advertising agency had illegally transferred large sums of money to foreign accounts,” including payments amounting to 9 million AED. The suspect Faisal, son of Muhammad Ilyas., was named in the statement and taken into custody for allegedly facilitating the transfers through informal channels. FIA further revealed that raid operations are ongoing to identify “other individuals and facilitators involved,” signaling that the probe may widen. Director of FIA Karachi Zone underscored a “zero-tolerance policy” against illegal financial transactions, making it clear that authorities view the matter as serious and systemic rather than isolated. Within hours of the FIA statement, Z2C Limited moved swiftly to contain the fallout. The company suspended its CFO pending investigation and launched an internal review. In its response, Z2C insisted the executive acted in a “personal capacity,” claiming that no company funds, systems, or accounts were used in the alleged transfers. The company also asserted that it is not itself under investigation and that the alleged actions are unrelated to its operations or clients. It pledged full cooperation if approached by authorities. However, the FIA’s explicit reference to a “well-known advertising agency” transferring funds abroad has raised questions about whether the investigation extends beyond a single individual. Z2C Limited was founded in 2016 by Raihan Merchant, the Karachi-based holding company sits at the heart of Pakistan’s communications, media, advertising, and digital marketing ecosystem. Through subsidiaries such as Brainchild Communications Pakistan and Blitz Advertising, Z2C operates under franchise-style arrangements with global heavyweight Publicis Groupe, enabling it to represent international brands like Starcom and MediaVest within Pakistan. Its footprint spans advertising, media planning, public relations, sports marketing, and digital technology — making the current controversy particularly high-stakes for the industry. The controversy has also cast fresh attention on Merchant’s broader media ventures, including links to Pakistan Idol. The show’s global streaming is tied to the Begin OTT platform, part of Merchant’s media ecosystem and operated under Merchant Holdings Limited (MHL). MHL Global has been associated with production and distribution activities related to the show, further underscoring the breadth of the business network now facing public scrutiny. Z2C’s expansion into technology and sports has made it even more prominent. The group invested in Walee Technologies, an influencer-marketing startup that recently made headlines after acquiring the Multan Sultans franchise in the Pakistan Super League for Rs 2.45 billion and rebranding it as Pindiz.