How a money laundering bill could impact money transfer to Pakistan
Pakistan’s parliament passed a new Anti-Money Laundering (AML) Bill on September 16th, 2020, in the hopes of removing the country from the Financial Action Task Force (FATF) grey list.
We will get onto what this means a bit later, but first, what are the best ways to transfer money to Pakistan?
How do I send money to Pakistan with Small World?
Using a dedicated money transfer website is often the best way to send money home. Money transfer sites tend to work hard to compare both their fees and their exchange rates, making sure their customers get the best deal.
Money transfer sites like Small World are tried and tested by their customers and handle millions of transactions a month.
They also offer a range of services for people who want to make a global money transfer, so there is bound to be one that meets the needs of you and your recipient. Some of these services allow money to be transferred as cash, or enable ATM pick-ups while there is also the option to send money digitally within minutes. These services vary between countries to meet the needs of individuals around the world.
Our recent blog post on how to choose the right transfer service for you outlines your options in more detail.
How do I transfer money to Pakistan via Small World?
Here’s everything you need to know in one handy blog post. Additionally, there are a number of incentives available, and your first transfer is always fee-free.
When sending money to Pakistan, you can choose to register on the Small World website, send money in person via a Small World agent, or download our App.
Your recipient can choose to receive their money in one of the following ways:
But shouldn’t I transfer money to Pakistan using a bank?
Interestingly, this often isn’t the best option. According to the World Bank banks are actually the most expensive channels, charging 11% in fees, significantly more than the global average of just 7%.
While you may think the quickest, safest and cheapest way to transfer money would be using a bank, banks often charge hidden fees, such as a fee applied to the recipient for receiving money. Furthermore, while banks can claim to be ‘commission free’, this means they load the exchange rate in their favor. Many banks do not update their rates throughout the day, and it can be difficult to find and compare them to see if they are working for you or against you.
What does the AML Bill mean for money transfer?
Being on the FATF grey list means that Pakistan is actively working to address “strategic deficiencies”. This means the government is attempting to counter issues like money laundering, proliferation financing and financing terrorism. This new legislation is a step in the right direction.
In order to be removed from the list, Pakistan must ensure that any money entering and leaving the country does so legally. The new bill means that anyone who transfers money to Pakistan illegally can be taken to court; this has already happened in Peshawar.
In an interview with Dawn, Jamal Ibrahim, a currency dealer in Karachi said, “The Anti Money Laundering legislation will stop smuggling of currencies, ban illegal trading, increase dollars and other currencies in open markets and banks while it will also bring stability in the exchange rate.”
Legal remittance has a positive impact on individuals as well as the country’s economy as a whole.
But why does this matter to people who send money to Pakistan?
What does the AML Bill mean for people who transfer money to Pakistan?
Safety and security
Most importantly, when you send money to Pakistan legally, your money is safe, secure, and guaranteed to get to where you want it to go. Your money is protected when you transfer money via a registered agent, app or website,
Your money is safe, and trackable, from the minute it leaves you to the minute it arrives whether it’s picked up as cash, or received into a mobile wallet. But, even via legal channels, there are choices to make.
Make sure you research your options.
Exchange rates are more stable
Exchange rates are constantly fluctuating, but without illegal selling and smuggling of currency, they are much more likely to remain more stable as well as more favorable. When sending money, you are looking for a higher rate; this means you get more foreign currency for your money and helps your recipient get the most out of your remittance. The more stable the rates, the more consistent this will be, allowing for forward planning and increased financial stability.
Our recent blog post on exchange rates has more details.
The most popular ways to send money to Pakistan:
- Cash Pick-up
- Bank Deposit
And don’t forget, your first transfer is fee-free. Our main partners in Pakistan are: MCB Bank, Wall Street, UBL, National Bank of Pakistan, Bank Alfalah, Allied Bank, Soneri Bank, JS Bank, and Bank AL Habib.