KARACHI, Jan 10: New restrictions imposed by American banking regulatory authorities on banks belonging to Muslim countries has further promoted ‘Hundi or Hawala’ business, claimed Malik Bostan, president, Forex Association of Pakistan.
Talking to APP here on Thursday, he said the banks in the US could not accept cash for onward transfer and the client had to submit money order or pay order to the bank.
“Documentation has forced a remitter to turn to Hundi wala in America,” chief of the 400 member Association said.
He urged the authorities to allow licensed moneychangers to transfer funds up to $10,000.
The NBP and other Pakistani banks have merged operations in the United States to remit funds under new rules.
According to the NBP, the average monthly inflow of remittances from America through banks stand at Rs1.5 billion.
A team of the United Nations last month met the representatives of the licensed moneychangers to know the system of Hawala or Hundi and had admitted their failure to net the regime.—APP
