The Bank of the Reserve of India (RBI) has asked the country’s lenders to increase the scrutiny about funds that flow indirectly from Pakistan, according to a letter seen by Reuters That cited a “high risk” that this money be used to buy weapons.
The direct flows of Pakistan funds to India are largely prohibited, and each transaction requires the approval of the Central Bank.
The directive, dated August 6, follows the investigations of the Indian agencies after the two neighboring countries participated in a fierce military conflict in May, caused by India blaming Pakistan, without evidence, for the Pehalgam attack of April 22 in the busy asshole.
The RBI called Pakistan a jurisdiction of “high risk” from a weapons financing perspective and cited Indian investigations on weapons financing, but did not come into details about his findings.
According to a government source with direct knowledge of the matter, the Indian research authorities discovered that some Pakistani citizens had sent funds to India through other countries.
The bank channels of India have a “high risk of being used for the financing of weapons by Pakistan,” said the source, which was not authorized to speak with the media and refused to be identified.
The Central Bank has general guidelines for banks to avoid money laundering and weapons and terrorism financing, but a directive that attracts attention to Pakistan is rare.
The Bank of the India Reserve did not respond to a Reuters’ Request for comments.
Zafar Masud, president of the Pakistan Banks Association, said in a statement that the “laws against Pakistan money laundering and combating terrorism financing is very strict and robust.”
RBI’s letter to banks and non -bank lenders also quoted separate cases in which Pakistan has been accused of violating global sanctions and rules.
He pointed out that a June 2025 report of the Financial Action Task Force of Watchdog Financial of June 2025 had accused a state entity of Pakistan, the National Development Complex, of “evading the sanctions through the importation of elements for the development of missiles without declaring them.”
The Pakistan Foreign Ministry did not respond to a Reuters Request for comments.
The letter also listed North Korea as a “high risk” jurisdiction, citing sanctions imposed by the United Nations Security Council on the country in the past.
