23 May 2019
Pakistani authorities should tighten supervision of traditional cash transfer methods as part of a wider overhaul of financial sector regulation to stem outflows of corrupt money, a British think-tank said.
Pakistani Prime Minister Imran Khan was elected to power last year on an anti-corruption platform and vowed to bring home billions of dollars in money stashed abroad, but progress has been slow and skeptics doubt any serious money can be recovered.
The Royal United Services Institute (RUSI) think-tank said Pakistan should focus on preventing corrupt money escaping the country in the first place, and urged focus on anti-money laundering measures by banks and money transfer firms operating in a largely cash-based economy.
Pakistan has for years faced international pressure to tighten regulation of its financial sector to prevent terrorism financing, a key issue for Western powers who have piled pressure on Islamabad over this issue.
“(Khan’s) apparent desire to address the illicit financial activity … offers an important opportunity for both those within and outside the country to drive up the integrity of Pakistan’s financial system,” the institute said in a report.
By Drazen Jorgic, Reuters, 22 May 2019
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