Is it Legal to Send Money to Pakistan?: Tips on Sending Money to Pakistan

With the widespread alarm of terrorists ever-present, the governing on money transfers to Pakistan has changed drastically. Of the many ways to wire money, some are of course a smarter choice than the others.

Politics in the country of Pakistan have had a drastic affect on businesses that were once successful. What were once reliable options now seem inconsistent. And with the country’s current conditions, the best plan is to transfer money is through a credible institution.

One of the more reliable options is through the S.W.I.F.T. wire transfer system, or the Society for Worldwide Interbank Financial Telecommunication. S.W.I.F.T. does not store and manage accounts as banks do, instead the sole responsibility of S.W.I.F.T. is to move data from bank to bank. All transactions are registered with both banks involved, and are sometimes monitored by governmental agencies. A massive drawback of wire transfer systems is that both persons are required to have a bank account with that particular institution. The sender must have an account in the country the money is being sent from, and the recipient must present their account number. This option is reliable and only takes about two or three days depending on the bank, but can bring on a dilemma if the person you need to get the cash to does not have a bank account.

If your recipient does not have a bank account, another feasible option is a location-based service. These businesses are found all over the world and charge a fee based on the amount transferred. Unfortunately, there is a restriction in place as to how much money you can wire. And although you could possibly send multiple transfers, it would significantly dent your wallet and some services allow no more than one transfer to the same person on any given day.

The most dated form of money transfer to Pakistan is the hawala. With roots in Islamic law and the good old-fashioned honor system, this way of transferring is now outlawed after terrorists began using it for money laundering. With this option, the sender would pay a hawala broker a small fee, and in turn the broker would call the location where the money was to be sent, then promise to reimburse the other hawala broker for completing the deal. This method is still being used today, but is no longer seen as a legitimate, legal form of cash transferring.

As it stands, the most practical way to transfer funds remains through online cash transfers or a specialized wire transfer service.