Money laundering is another form of corruption. When money is generated through illegal means, it is difficult to put it directly into any investment venture. A black money holder looks for a window of opportunity to stash it at a suitable place. When thrust of the government is to stop money laundering and not on the measures to stop its generation it fails on both accounts at the end. If dirty money is abundantly generated in case of Pakistan, the best way for the government is to utilize it in a positive manner. That doesn’t mean the government should give a free hand to corrupt elements to do whatever they want to do by dodging the law. Of course campaign against corruption should continue, but a window of opportunity should remain open for illegal money holders. Otherwise, the country’s wealth will continue to fly to foreign destinations. The State Bank of Pakistan has advised the banks to launch capacity-building programmes for their staff to control money laundering within and outside the country.
SBP Governor Ashraf Mahmood Wathra in a meeting with heads of the country’s banks, draw their attention towards the rumours ripe in the social media that officials of a particular bank are suspiciously travelling abroad without any apparent cause which has created a panic-like situation in the financial circles. Reports suggest several mafia groups have propped up in various parts of the country and they have set up syndicates to commit organized crimes. A US State Department report accuses some money changers of laundering billions of dollars annually. No doubt terrorist organizations can also use this facility to get their funding from hostile countries to launch subversive activities in Pakistan. Some complete the process of money laundering by ‘carriers’ who get a clean chit at airports in connivance with corrupt officials. Others use illegal money changers to facilitate illicit money movement from Pakistan to the United Arab Emirates, the United States, the United Kingdom, Canada, Malaysia and Australia. The black market economy of the country is a challenge for the government, as it runs through real estate sector, prize bonds mafia and smuggling cartels. However, it is also blessing in disguise as it is the driving force to spur various economic activities in the country.
It is good omen that the country has started its journey towards corruption free environment and has improved its ranking in the latest report of the corruption perception index. However, money laundering cannot be stopped only by banks, but all the government agencies and departments will have to work in tandem to achieve the common goals.
