Pakistan FIA Targets Online Gambling in Major Payment Network Crackdown
Pakistan's Federal Investigation Agency has shut down over 100 payment accounts and made arrests in a wide-ranging investigation into online gambling and illicit financial networks, causing significant disruption to the country's digital payment ecosystem.
- More than 100 JazzCash aggregator accounts have been closed as part of an FIA investigation into online gambling and illegal money transfers.
- Investigators uncovered a financial network with an alleged turnover of approximately Rs119.93 billion ($433.5 million) linked to single-member companies.
- The crackdown has led to payment processing delays for fintech services including Easypaisa, with international processor dLocal also affected.
Authorities in Pakistan are conducting a major crackdown on an alleged network involved in online gambling and digital hundi-hawala, an informal money transfer system. The Federal Investigation Agency (FIA) operation has resulted in the closure or suspension of more than 100 aggregator accounts associated with the mobile payment service JazzCash. Some accounts were closed following FIA notices, while others were reportedly suspended after internal reviews.
As part of the operation, two suspects, identified as Muhammad Zeeshan and Muhammad Hamza, have reportedly been arrested. The FIA's Faisalabad office has registered cases against a total of eight suspects under the Foreign Exchange Regulation Act and sections of the Pakistan Penal Code.
Billions in Illicit Transactions
The scale of the financial activity under investigation is substantial. The FIA in Faisalabad reportedly identified accounts belonging to 11 single-member companies that recorded a combined credit turnover of approximately Rs119.93 billion, equivalent to around $433.5 million. In a separate line of inquiry, investigators are said to have traced around Rs8.586 billion moving through five collection accounts, which involved approximately 10.5 million individual transactions.
The investigation has named six online platforms in connection with the alleged network: U7777 Game, TD777, Game89, EPIWIN, B9 Game, and S9 Game. Payments linked to these platforms were reportedly processed through a variety of channels, including traditional bank accounts, mobile wallets, and cryptocurrency, specifically the stablecoin USDT.
Wider Fintech Disruption
The increased regulatory scrutiny is having a knock-on effect across Pakistan's fintech sector. Payment channels connected with the Easypaisa service have reportedly experienced delays. The disruption has also impacted several payment companies, with SWICH, Simpaisa, ajarPay, RapidPay, Zero Technologies, and Finza Tech all linked in reports to payment or settlement issues. International payment processor dLocal has also confirmed it is investigating processing problems connected with Easypaisa.
This latest enforcement action follows previous moves by Pakistani authorities to curb illegal online activities. The Pakistan Telecommunication Authority (PTA) had earlier blocked 46 applications associated with online gambling, unregulated foreign exchange trading, and problematic data-collection practices. In separate prior enforcement drives, the PTA also blocked hundreds of other gambling-related websites and applications, with reports citing figures of 184 and 260 platforms being taken down.
