Financial Crime World

Pakistan’s Financial Institutions Take Centre Stage in Anti-Money Laundering Efforts

Pakistan, a nation ravaged by terrorism, has taken concrete steps to counter extremism and terrorism, with a significant focus on anti-money laundering (AML) efforts. The country’s economic losses from terrorism have been staggering, with estimates suggesting huge financial burdens since 2001.

In recent years, Pakistan has strengthened its legal framework to combat the threat of terrorism, including:

  • The Anti-Terrorism Act of 1997 and its amendments
  • The Anti-Money Laundering Act of 2010
  • The Protection of Pakistan Ordinance of 2013

This multi-faceted approach has enabled the country to effectively counter all forms and manifestations of terrorism.

International Cooperation

Pakistan is also a key player in international discussions on terrorism and extremism, participating actively in:

  • United Nations (UN)
  • Organization of Islamic Cooperation (OIC)
  • Other forums
  • Implementing UN Security Council Resolutions related to counter-terrorism, including sanctions regimes against Al Qaida/Da’esh and the Taliban

Robust AML/CFT Framework

Pakistan boasts a robust Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) framework, with compliance ratings from the Financial Action Task Force (FATF). The country has enacted laws, policies, and procedures to counter money laundering and terrorism financing, including:

  • The Anti-Money Laundering Act of 2010
  • The Mutual Legal Assistance Act of 2020

Pakistan is a member of the Asia-Pacific Group (APG), a FATF-style regional body, and engages constructively with APG and FATF to strengthen international standards. The country’s prolonged engagement with FATF has led to significant transformations in its financial and economic system.