FATF report highlights Oman-based hawala network facilitating transfers to Pakistan

Profit by Pakistan Today reported that a joint study by the Financial Action Task Force and the OECD described an Oman-based hawala ring sending unlicensed remittances to Pakistan. The operators promoted currency and transfer services through a WhatsApp group called XX Money Exchange, aimed at expatriates in Oman. Senders paid in cash or through mobile-linked payments, while the group arranged matching payouts in the destination country using digital wallets.

The Central Bank of Oman acted on a whistleblower tip and on an alert from a reporting entity that had seen customer remittances fall sharply along certain corridors. Its enquiries found the rates sat under the formal market level, with little or no fee charged. According to the report, the scheme took advantage of zero-cost transfers into Pakistan via Raast and exchange rate gaps offered by some digital wallet or payment providers.

The case is one part of wider FATF-OECD findings that underground banking is becoming more professional, blending traditional methods with virtual assets and fintech platforms. Drawing on input from about 45 jurisdictions and organisations, including Pakistan and India, the report found that over 80% of jurisdictions reporting data named underground banking among leading channels for professional money laundering. In some instances more than €500 million was laundered through such schemes within a few months.