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 | | Tuesday, 6 November, 2001, 14:15 GMT Pakistan moves on money laundering  Dubai is the largest centre where Pakistani rupees are bought and sold outside Pakistan Pakistan's central bank governor is to put pressure on the United Arab Emirates (UAE) to tighten its controls on money exchange. Dubai, the commercial capital of the UAE, is a hub for money changers and the biggest market for Pakistani rupees outside of Pakistan itself. The Pakistani governor Dr Ishrat Husain is to visit as part of a global drive to crack down on the financing of terrorism. While it is unclear how much influence Pakistan has on the UAE administration, the UAE is unlikely to want to be seen as a country which facilitates illegal flows of money. The Pakistan Government wants to set up regulated exchange companies where all money dealers would have to register and keep their records. The bank's governor is hoping to encourage similar regulation in the UAE. Simple swap A foreign currency remittances system known as Hundee or Hawala is particularly widely used in UAE.
People take funds to a money dealer, who then contact dealers in other countries to swap the amount they want to transfer. It is difficult for regulatory authorities to supervise such deals, though the Pakistani administration wants to keep track on larger transactions. The Pakistani rupee has strengthened by 4%, amid hopes that the US will support the country's debt restructuring. | |
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