Lending Your Bank Account to Someone Else in Pakistan: Hundi Cases, 15 Day Freezes and What to Do

If you let a relative, a friend or a stranger move money through your bank account in Pakistan, your bank may report the account to the Financial Monitoring Unit (FMU), the FMU's director general can freeze funds for up to 15 days, and the law punishes knowingly holding or moving proceeds of crime with up to ten years in prison. The safest rule is to keep your account for your own money.

Requests like "my cousin needs to receive Rs 500,000 in your account, I will take it out tomorrow" are common, and they are exactly the pattern the FMU describes in its hundi and hawala cases. We read the FMU's case studies, its question and answer sheet for banks and the Anti Money Laundering Act, 2010 on 22 October 2026. Here is what they say and what to do.

FMU case studies show hundi networks run through ordinary accounts

Hundi and hawala are informal ways of moving money without a bank transfer. The FMU's published cases show networks that used many ordinary accounts to receive and pass on funds. The FMU says it found them because the account activity did not match the account holders.

These are the FMU's own descriptions. We have not seen the outcome of any case in court, and the FMU does not give names.

Banks flag accounts whose activity does not match the customer

The FMU's red flag list for banks includes a previously quiet account used to receive or pay out unusually large sums with no clear purpose. It also lists money withdrawn straight after it is deposited, and unusual transfers among related accounts. No single sign proves anything, and the list says a combination is what matters.

That is the problem with lending an account. A salaried person's account that suddenly handles Rs 3 million in a week fits the pattern of turnover that does not match the holder. The bank does not know your cousin, and it must report what it suspects. An account that has been quiet for years and is then used as a pass-through is on the list too.

The law can reach a person who holds or moves proceeds of crime

Section 3 of the Anti Money Laundering Act makes it an offence to acquire, possess, use or transfer property knowing or having reason to believe it is proceeds of crime, or to hold property for another person on the same basis. Section 4 sets the punishment at up to ten years in prison and a fine of up to Rs 1 million.

The key words are "knowing or having reason to believe". A one-off payment for a friend is not an offence in itself. But the Act says knowledge can be inferred from the facts, and the offence can be proved without a conviction for the original crime. If someone gives you a vague reason, an unusual amount and asks for cash back at once, "I did not know" will be a hard answer to give.

The text we read is the FMU's copy "as amended up to February 2020". A later amendment could have changed a number.

A freeze can last 15 days and the bank may not be able to tell you why

Under section 6(6), the FMU's director general can order the freezing of property for up to fifteen days when there are reasonable grounds to believe it is involved in money laundering. The FMU's sheet adds that a bank does not have to freeze funds just because it filed a report.

A bank can also end the relationship, and the sheet says it decides under its own policy, except where the Act requires it. The report itself is secret: a bank officer who leaks it faces up to five years in prison or a fine of up to Rs 2 million. So a branch manager may truly be unable to explain.

If your account is restricted, the steps for asking in writing and for escalating are in the guide to a blocked or lien marked account. A complaint to the banking ombudsman follows the banking mohtasib guide.

If someone asks to use your account, say no and offer a safer route

A refusal costs a small awkward moment, while a freeze can lock the funds in your account for up to fifteen days. The kinder answer is to point the person to a legitimate way to receive money in their own name.

1. Say that your account is for your own money only.
2. Suggest the person opens their own account, or uses an exchange company that is authorised by the State Bank for incoming remittances.
3. If the money is from abroad, ask for the sender's details and use a licensed channel instead.
4. If you already let someone use your account, stop now and keep every message and slip.
5. Tell your bank if it asks, and give it the true explanation and the documents.
6. Take legal advice if the bank restricts the account or a law enforcement agency contacts you.

The legitimate remittance routes are in the guide to receiving a home remittance through Raast, and the check for a licensed company is in checking an exchange company. If you think your account was used without your knowledge, read the guide to CNIC identity theft warning signs.

Common questions

Is it illegal to let a friend receive money in my account?

Not by itself. The offence needs knowing or having reason to believe the money is proceeds of crime, but the risk of a report and a freeze is real.

How long can the FMU freeze my account?

The director general can freeze property for up to fifteen days under section 6(6) of the Anti Money Laundering Act, when there are reasonable grounds.

Will my bank tell me it reported me?

Probably not. The law protects the secrecy of a suspicious transaction report, and leaking it is punishable.

Does a report mean my account is frozen?

No. The FMU says a bank has no requirement to freeze funds after filing a report, unless another law requires it.

What is hundi?

It is an informal way to move money without a bank transfer. The FMU files its cases under alternate remittance service, hawala and hundi.

What is the penalty for money laundering?

Up to ten years in prison, a fine of up to Rs 1 million and forfeiture of the property involved, under section 4.

How we verified this

What we checked, where we read it, and what we could not confirm.

Last checked 22 October 2026. The cases are from the FMU's hundi and hawala typology page. The freeze, report secrecy and penalty rules are from the FMU's question and answer sheet on suspicious transaction reports and the Anti Money Laundering Act, 2010 as amended up to February 2020. The red flags are from the FMU's list for banks. This is not legal advice. We did not read any court outcome, and we did not test how a bank treats a lent account.