Hawala and Unauthorized Foreign Exchange Transfers Under Fire

The government of Pakistan has launched a major crackdown on illegal foreign currency transfers, targeting hawala and hundi networks involved in money laundering. The decision came during a high-level meeting co-chaired by Interior Minister Mohsin Naqvi and Finance Minister Muhammad Aurangzeb, where authorities vowed strict action against individuals and institutions bypassing formal banking channels to send funds abroad. Officials emphasized that currencies like the US dollar, British pound, and euro must only be transferred through legal channels, warning that no leniency will be shown for violations. A joint working group, comprising the State Bank of Pakistan and the Federal Investigation Agency, will oversee enforcement, monitor hawala networks, and ensure compliance. The move aims to make remittances more secure, transparent, and efficient while curbing informal systems that threaten the economy. Senior officials, including the Finance Secretary and DG of FIA, participated in the session, reaffirming the government’s commitment to strengthen financial regulations and prevent large-scale money laundering.