Analyzing Anti Money Laundering Laws in Pakistan and Comparison of the AML Laws of Pakistan with FATF Standards
Abstract
This study sheds light on the widespread concern about money laundering and its far-reaching implications by exploring the nuances of Pakistan's anti-money laundering (AML) regulations and their compliance with FATF criteria. The practice of turning illegal cash into lawful assets, or money laundering, is a widespread problem that requires strong legal frameworks and international collaboration to effectively mitigate. Pakistan has implemented significant legal changes, including the Anti-Money Laundering (Second Amendment) Act of 2019 and the Anti-Money Laundering Act of 2010, in recognition of the seriousness of money laundering. The Securities and Exchange Commission of Pakistan and the State Bank of Pakistan were among the regulatory agencies affected by these reforms, which also broadened the definition of violations. Pakistan adopted an action plan in response to FATF concerns, showcasing advancements in the examination and punishment of terrorism funding. The research is significant because it urges national and international agencies to take proactive actions in support of anti-money laundering efforts. The study aims to compare Pakistani AML regulations with FATF standards and analyze them, highlighting the significance of financial stability methods. From the Anti-Narcotics Act of 1997 to the Anti-Money Laundering Act of 2010, Pakistan's AML legislation have demonstrated a progressive stance. Effectiveness, however, depends on public-private collaborations, enforcement strategies, and technology advancements. Examples from the real world, such as the Omni Group and the Panama Papers, highlight the need for substantial changes to financial legislation and political responsibility. This study adds significant knowledge to international efforts to combat money laundering by highlighting the significance of cooperation, technological adaptability, and extensive financial and legal reforms for successful mitigation.
