Pakistan launches major crackdown on money laundering, Hawala/Hundi Networks

ISLAMABAD, Mar 17 (APP): In a high-level special meeting chaired by Interior Minister Mohsin Naqvi and Federal Finance Minister Muhammad Aurangzeb, the government on Tuesday approved an aggressive nationwide crackdown against money laundering and the hawala/hundi networks operating across the country.

The meeting resolved that strict action will be taken against major business figures and institutions involved in illegally transferring funds abroad. Officials agreed that no leniency would be extended to individuals or entities engaged in money laundering or hawala/hundi operations.

It was decided that overseas remittances must be sent strictly through banking channels and other legally approved mechanisms. The process of sending money abroad through money changers will also be streamlined to eliminate loopholes and ensure complete transparency.

The ministers emphasized that the entire mechanism for foreign remittances will be made “transparent and foolproof.” All illegal channels used for transferring funds abroad will be discouraged at every level.

A strong resolve was expressed to take firm action against “big money launderers,” with the ministers reiterating that the business of hawala/hundi would not be tolerated under any circumstances.

The meeting also approved the formation of a joint working group of the State Bank of Pakistan and the Federal Investigation Agency (FIA). The group will regularly review progress on all relevant matters linked to combating illegal financial flows.

During the session, the Governor of the State Bank briefed participants on the current system of fund transfers through banking channels. The meeting was attended by the DG FIA, the Governor of the State Bank, and the Federal Finance Secretary.