KARACHI: State Bank of Pakistan (SBP) has warned the general public and persons engaged in sale, purchase and transfer of foreign currency through Hawala/Hundi.
The SBP said that people may unknowingly become part of money laundering and terrorism financing offence by dealing with illegal foreign exchange operators.
The money laundering and terrorism financing offences are punishable under Anti-Money Laundering (AML) Act, 2010 and Anti-Terrorism Act (ATA), 1997.
The business of foreign exchange in Pakistan is regulated under Foreign Exchange Regulation Act (FERA) 1947. The SBP issues authorization to banks and exchange companies to conduct foreign exchange business.
“Any person (individual or entity) other than those authorized by the SBP are doing illegal foreign exchange business which is a punishable offence under FERA 1947 and AMLA 2010. All such operators are informed in their own interest not to indulge in illegal foreign exchange sale/purchase and hawala/hundi business.”
Extensive action against illegal currency exchange and Hawala/Hundi Operators is being carried out by relevant law enforcement agencies.
The SBP also advised the general public to carry foreign exchange sale, purchase and remittance transactions with only SBP authorized banks and exchange companies.
“Do not forget to collect the system generated official receipt of your transactions. If you come across any illegal foreign exchange sale/purchase and Hawala/Hundi Operators, send their details to the FIA,” the SBP added.