Govt approves crackdown on hawala, money laundering networks

Aurangzeb, Naqvi call for transparent and foolproof remittance system

The government on Tuesday approved a nationwide crackdown against money laundering and hawala/hundi networks operating across the country, with authorities reiterating that the “business of hawala/hundi would not be tolerated under any circumstances”.

The decision was taken at a high-level meeting jointly chaired by Interior Minister Mohsin Naqvi and Finance Minister Muhammad Aurangzeb.

The meeting's members resolved that strict action would 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 would also be streamlined to eliminate loopholes and ensure complete transparency.

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The ministers emphasised that the entire mechanism for foreign remittances would be made “transparent and foolproof”, adding that all illegal channels used for transferring funds abroad would 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 comprising the State Bank of Pakistan and the Federal Investigation Agency. The group will regularly review progress on matters related to curbing illegal financial flows.

During the session, the governor of the State Bank briefed participants on the current system of fund transfers through banking channels.