Pakistan’s federal government has launched a major nationwide crackdown on money laundering and illegal hawala/hundi networks, as announced on March 17, 2026.
In a high-level meeting co-chaired by Interior Minister Mohsin Naqvi and Finance Minister Muhammad Aurangzeb in Islamabad, authorities approved aggressive measures to curb illicit fund transfers abroad and promote transparent remittances through official channels.
Government’s Zero-Tolerance Stance The crackdown targets major business figures, institutions, and operators involved in illegally moving funds overseas. Officials emphasized that no leniency will be shown to those engaged in money laundering or hawala/hundi activities.
The hawala/hundi system—informal, unregulated money transfers—will not be tolerated under any circumstances, with strict enforcement promised against “big money launderers.”
Formation of Joint Oversight Mechanism A key outcome of the meeting was the establishment of a joint working group comprising the Federal Investigation Agency (FIA) and the State Bank of Pakistan (SBP). This group will regularly monitor progress, review enforcement actions, and ensure coordination in combating illegal financial flows.
The SBP Governor provided a briefing on existing banking channel mechanisms for fund transfers, highlighting the need for a “transparent and foolproof” remittance system.
The initiative aims to streamline processes for money changers while eliminating loopholes that enable illegal transfers. All overseas remittances must now route through approved banking or legal channels to enhance transparency and reduce reliance on informal networks.
This comes amid ongoing efforts by the FIA to intensify raids and arrests related to hawala/hundi, building on prior operations that have seen hundreds of cases and significant recoveries in recent years.
The move is expected to strengthen Pakistan’s financial regulatory framework, curb capital flight, and support economic stability by channeling remittances officially.
Interior and finance ministers reiterated their resolve for firm action, signaling a broader push to dismantle these underground networks nationwide.