US Treasury Secretary John Snow was in Pakistan yesterday to discuss a push to choke off terrorism funding and moves to regulate the popular hawala money-transfer system in which funds can be moved around the world with little trace.
Snow's visit to Islamabad followed a one-day trip to the Afghan capital, Kabul, where he said the country remains a "critical priority" for the US despite the cost of operations in Iraq. He also said he expected Saudi Arabia and other nations to meet a US request for more money to help rebuild the two war-shattered countries.
The US has been pressing countries, especially in the Middle East and South Asia, to clamp down on the hawala system, claiming it can be used to aid terrorists.
Under the ancient practice, people transfer money without paperwork by using individual money traders who have counterparts in other countries.
Hawala agents can be found throughout the region. Afghans rely on them because the country has few banks. Many Pakistanis, and other Asians, working in low-paid jobs in Gulf states and elsewhere use them to send money home.
Pakistani President General Pervez Musharraf's government last year passed a law that requires all hawala dealers to register with the government and document their transactions so authorities can track them.
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