Pakistan threatens tough action on money launderers

State Bank of Pakistan (SBP) officials have warned they will take legal action on traders and exchange company dealers found money laundering and smuggling.

In a meeting with leading owners of exchange companies, the bank instructed them to closely monitor the purchase of US dollars to prevent hard currency shortages in the official exchange market.

Strict recordkeeping

Exchange company members were asked at the meeting chaired by SBP’s executive director, Syed Irfan Ali, to keep strict records of US dollars to most buyers.

Sales of US dollars to residents of the province of Khyber Pakhtunkhwa, which borders Afghanistan, should be stopped completely the exchange companies were told.

The SBP is concerned that US dollars are smuggled from the province into Afghanistan and beyond.

Licenses revoked

Bank officials at the meeting warned the exchange companies that they would face prosecution under anti-money laundering legislation if they were found to be involved in money laundering activities.

The exchange companies were further warned that their licenses could be revoked if they failed to abide by the SBP’s instructions.

Categories: Trade Based Financial crimes News

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