Abstract:
This study analyzes and explains the current status of money laundering faced by the whole world and with a special perspective of Pakistan. It analyzes that how and why the money launderers need the banking system to launder the proceeds of their crimes.
The study finds out the ground realities of money laundering problem specially the difference between the policies and the realities. The respondents of this study are the people who are working in various commercial banks.
The study finds out that in the past the money launderers heavily used the nationalized banks but now when there is only one nationalized bank working, the load is now shifted to relatively smaller commercial banks working in the private sector. However the foreign banks working in Pakistan have a better policies and their implementation regarding money laundering.
This study finds out that the legislation regarding money laundering is more than enough but the State Bank of Pakistan requires proper implementation. The study finds out that Pakistani nationals working abroad to send remittances to their families have extensively used the hundi or hawala money exchange system. The system is not secure and there is no paper trail and it is very attractive to the criminals. 2 billion $ are transferred each year through hundi
system alone.
The study further finds out extensively involved in money Pakistan is around 35 billion.
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The study finds out that currently and in the past the Politian are heavily involved in money laundering and they used the Pakistani nationalized banks to launder it. More over the estate brokers and the moneychangers are the key clientele involved in money laundering. After 9/11 the world is very serious about this issue and the state bank of Pakistan has to effectively deal with it either of its own will or because of the international pressure
