Govt orders massive crackdown on money laundering, hundi-hawala

In a high-level joint meeting chaired by Federal Interior Minister Mohsin Naqvi and Federal Finance Minister Senator Muhammad Aurangzeb, the government has decided to launch a comprehensive crackdown against the money laundering and hundi-hawala mafia.

The meeting focused on tightening the noose around major business figures and institutions involved in illegally transferring funds abroad.

Naqvi said no leniency will be shown to influential individuals or entities involved in money laundering or hundi operations.

It was reaffirmed that all international fund transfers must proceed exclusively through banking and other legal financial channels.

The process of sending money abroad via money changers will be streamlined to ensure the entire mechanism is transparent and “foolproof.”

The ministers emphasised that “big-time” money launderers will be dealt with iron hands, stating that the hundi-hawala business will not be tolerated under any circumstances.

To ensure effective implementation, the government has decided to form a Joint Working Group (JWG) comprising the Federal Investigation Agency (FIA) and the State Bank of Pakistan (SBP).

The JWG will regularly monitor progress on all matters related to illegal currency movements.

The Governor of the State Bank briefed the attendees on the existing systems for transferring funds through formal banking channels.

The strategic session was attended by the director general of the FIA, the governor of the State Bank of Pakistan, and the federal secretary for finance.