Govt forms FIA-SBP unit as crackdown on Hawala-Hundi intensifies

The government has stepped up efforts to curb illegal currency movements, announcing the formation of a joint enforcement mechanism to target money laundering and hundi-hawala operations.

A high-level meeting co-chaired by Interior Minister Mohsin Naqvi and Finance Minister Muhammad Aurangzeb approved the establishment of a Joint Working Group comprising the Federal Investigation Agency and the State Bank of Pakistan.

The group will oversee and monitor progress on actions against illegal cross-border fund transfers and related financial crimes.

Officials at the meeting emphasised that all international transfers must be routed through formal banking channels, with no tolerance for parallel systems such as hundi-hawala networks.

The ministers also agreed to streamline overseas remittance processes handled by exchange companies to improve transparency and plug regulatory gaps, aiming to make the system fully traceable.

Speaking during the session, Naqvi warned that no leniency would be extended to influential individuals or entities involved in such activities, adding that large-scale operators would face strict action.

The meeting, attended by senior officials including the FIA director general, the SBP governor and the federal finance secretary, reviewed existing enforcement mechanisms and discussed measures to tighten control over illicit financial flows.

A briefing by the central bank governor outlined the current framework for legal fund transfers, as authorities signalled a more coordinated and aggressive approach to dismantling money laundering networks.