Pakistan launches major crackdown against money laundering, hawala-hundi networks

• Joint working group of SBP and FIA to monitor progress.
• Money change transfers to be streamlined for full transparency.
• FIA foils human smuggling bid, 33 women taken into custody.

The federal government on Tuesday approved an aggressive nationwide crackdown against money laundering and the hawala-hundi networks operating across the country.

The approval was given in a high-level special meeting chaired by Interior Minister Mohsin Naqvi and Finance Minister Muhammad Aurangzeb.

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 emphasised 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, they said.

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 (SBP) 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 SBP governor briefed participants on the current system of fund transfers through banking channels.

The meeting was attended by the FIA director general, the SBP governor, and the federal finance secretary.

FIA foils human smuggling bid

Separately, the Federal Investigation Agency (FIA) foiled an attempt to smuggle women abroad in Karachi, taking 33 women belonging to various districts of Punjab into custody, a spokesperson said.

Human traffickers and agents accompanying the women were also arrested during an FIA raid carried out on a tip-off at two hotels near the Passport Office in Saddar area of the Sindh capital.

The officials recovered 29 passports and other related materials from the suspects.

The FIA has registered three separate cases against the accused in connection with the operation.