KARACHI: State Bank of Pakistan (SBP) has warned general public against sale and purchase through illegal operators and transfer of foreign currency through Hawala and Hundi.
The SBP informed the general public that a person 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.
“It is advised in your self-interest to carry foreign currency sale, purchase and remittance transaction with only SBP authorized banks and exchange companies.”
The SBP also advised that do not forget to collect system generated official receipt of transactions. If a person come across any illegal foreign exchange sale/purchase and Hawala/Hundi Operators should report the Federal Investigation Agency.
The SBP said that the business of foreign exchange in Pakistan is regulated under Foreign Exchange Regulation Act 9FERA) 1947.
State Bank of Pakistan 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 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 said.