Money-laundering, 'Hundi' at peak again in Pakistan
Pakistan Times Special Report

LAHORE: The unlawful business of ‘Hundi’ and money-laundering has reached at peak again as actions taken by the State Bank and Securities & Exchange Commission of Pakistan have proved ineffective in combating this illegal activity in the country.

Details reveal that several famous exchange companies were still carrying out clandestinely their most-lucrative business of ‘Hundi’ and money-laundering.

Like past some currency dealers are again providing their full-fledged service of supplying foreign currency in every nook and corner of Pakistan and rest of the world through their well-organised unofficial channels of ‘Hundi’ in just few minutes.

Perspective

After 9/11 incidents, the federal government, central bank and the SECP have established special monitoring cells, with financial and technical support from the World Bank, Asian Development Bank, with the objective to discourage ‘Hundi’ and money-whitening in the country, but these measures have proved ineffective.

Exchange Set-ups

A number of exchange companies, engaged in foreign currencies business, are comfortably doing this business for the last many years.

Soon after 9/11 incidents, the currency dealers became cautious and they minimised their unlawful business, but during the last few years, the illegal transfer of money through unofficial channels and money-whitening had reached at peak again.

The current facility of Telegraph Transfer (TT) has been proving a major source of money laundering as the elite class has been using this safe and swift channel to whiten their ill-gotten wealth that is free from probe and enjoys tax exemption as well, a currency dealer said.

He claimed that the federal government had allowed the facility of TT 'to accommodate the influential, affluent and mighty class of the country.'

The Rates

Some exchange companies were receiving 50 paisas to one rupee per US dollar as service charges to arrange the TT from any part of the world, especially the UAE and Saudi Arabia.

The federal government had been providing exemption of tax and probe on the transfer of foreign exchange through TT and the ‘deserving class’ of the country was taking full advantage of this facility.

A number of acquaintances of this scribe have sent and received foreign currency through the ‘Hundi’ system during the last few years.

It was further learnt that some Pakistani bankers, posted in different countries, were also involved in ‘Hundi’ and they were using their colleagues and relatives in Pakistan for the quick transfer of money.

For supplying money in Pakistan, the local representatives of the bankers were receiving 1-2 rupees as charges against the supply of each dollar, Euro and Pound Sterling.

“I often used to receive dollars through ‘Hundi’ system from the United States before 9/11 incidents and I am still getting the US currency like earlier without any delay and hassle,” a property dealer said on the condition of anonymity.

Although the currency dealers have become cautious after 9/11 developments, the activity was still going on and these days it was again at its peak, he added.●