Letter of credit (L/C) transactions will remain exempt from Pakistan’s requirement to provide details of funding for import transactions according to State Bank of Pakistan (SBP) governor, Ashraf Mahmood Wathra.
Importers paying for goods through Hawala money-exchanges are however required to provide details of how their purchases are funded.
Dubai trades
Wathra told local media that the SBP is concerned that funding from Dubai through the Hawala system may be used for money laundering or terrorist financing.
He said the share of non-L/C import transactions is between 25 and 30 per cent, of which 5 per cent are Hawala transactions. All of these transactions require scrutiny, the governor said.
Frozen assets
Pakistan has also frozen one billion rupees (Rs1 billion) in 121 bank accounts in pursuit of the country’s drive against terrorist financing.
Under the Anti Terrorism Act, Pakistan’s ministry of interior has also frozen Rs3.5 million in eight bank accounts.
Categories: Trade Based Financial crimes News
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