Financial intelligence unit of Pakistan: an evaluation of its performance and role in combating money laundering and terrorist financing

Sultan, Nasir; Mohamed, Norazida

doi:10.1108/jmlc-04-2022-0060

Cited by 19 publications

(14 citation statements)

References 70 publications

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“…counterparties. LEAs, on the other hand, mentioned that the average time is 2–3 years to receive STRs from FMU; the analysis FMU performed is not conclusive (Sultan and Mohamed, 2022). Further, this considerable time lapse undermines the investigation as the reported funds might have changed many hands or transferred aboard.…”

Section: Resultsmentioning

confidence: 99%

Challenges for financial institutes in implementing robust customer due diligence in Pakistan

Sultan

Mohamed²

2022

JMLC

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Purpose This study aims to investigates the challenges faced by Pakistani financial institutes (FIs) and regulators in implementing robust customer due diligence measures. Design/methodology/approach The study adopted a qualitative technique. Twenty-five semi-structured interviews with chief compliance officers and regulators were conducted. Findings The study concluded that the main challenges are name screening, obsolete nature and quality of databases and undocumented, unregistered and unregulated portions of the economy and society. In addition, identification and verification of high-profile customers and beneficial owners, lack of specialised staff and cost of compliance are the significant challenges faced by FIs in Pakistan. Originality/value The Pakistani financial sector is less researched on anti-money laundering front, especially concerning customer due diligence. Further, the social, cultural and economic norms of the Indian sub-continent are more or less the same. Therefore, the study findings could be generalised to the region.

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Section: Resultsmentioning

confidence: 99%

Challenges for financial institutes in implementing robust customer due diligence in Pakistan

Sultan

Mohamed²

2022

JMLC

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“…The statues of the person suspected as the active taxpayer on the FBR portal must also be checked and record must be entered under STR. Furthermore, the amount of tax paid by such person must also be part of the suspicious transaction report (Sultan & Mohamed, 2022).…”

Section: Legal Framework Of Money Laundering Detection and Reporting ...mentioning

confidence: 99%

Technological Advancements and Legal Challenges to Combat Money Laundering: Evidence from Pakistan

Akhtar

Khan

Raza³

2023

Pak. J. Humanit. Soc. Sci

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The primary objective of this research article is to examine technological advancements and legal challenges to combat crime of money laundering in context of Pakistan. The risk of money laundering, as well as the considerable threat posed by terrorist funding, poses a serious danger to the socioeconomic equilibrium of Pakistan. In today's world, money laundering is a huge financial problem as well as a crime. Billions of dollars are smuggled illegally across international boundaries each year. Laundering ill-gotten gains has developed into a significant issue in the world's financial system, and the authorities are working hard to eliminate it. Technology doesn't always advance positive outcomes. With the advancement of technology, financial crime tactics are becoming more sophisticated. The most common method of money laundering is through financial systems. Therefore, banks are obligated to make use of technology to combat the practise of money laundering. However, technology can help financial institutions such as banks to fight against financial crimes. Any institution that chooses to ignore AML guidelines runs the risk of incurring punishment, such as monetary penalties. Therefore, this paper fills this gap by critically examining the legal challenges faced by financial institutions in Pakistan in their use of technology to combat money laundering. For this research, the qualitative doctrinal research methodology is used that is based on documentary analysis. This research critically analyses the legal challenges faced by financial institutions such as banks in their compliance with anti-money laundering regulations. This paper critically examines the parliamentary statutes, regulations, policies in various domestic jurisdictions and international statutes, treaties, conventions and other existing data relating to technological advancements to combat money laundering.

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“…Section 6(4)(e) of anti money laundering (AMLA), FMU is empowered to cooperate with international counterparts. However, FMU has signed only 15 memorandum of understandings (MoUs) with different countries, including the UK, Australia, China and UAE (Sultan and Mohamed, 2022a). Further, most MOUs were signed after momentous and continuous pressure from the international community.…”

Section: Current Situation Of Mutual Legal Assistance In Pakistanmentioning

confidence: 99%

“…Pakistan is the 5th largest country in terms of population. However, Pakistan has limited MLAs (Sultan and Mohamed, 2022a). Moreover, most MLAs are with countries, for example, Central Asian states, Sri Lanka and Iran, with whom information sharing is negligible.…”

Section: Introductionmentioning

confidence: 99%

The role of information sharing in combating money laundering: the importance and challenges of mutual legal assistance for developing jurisdictions like Pakistan

Sultan

Mohamed²

2022

JMLC

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Purpose The study aims to explore the challenges of developing jurisdictions like Pakistan in achieving significant mutual legal assistance from the international community, especially for sharing financial information. Design/methodology/approach A qualitative approach of semi-structured interviews was adopted to complete the study’s objective. The selection of financial experts for interviews was based on purposive sampling. Findings This study concluded that Pakistan is facing several challenges, including mistrust of the international community; political disinterestedness and instability; delaying tactics in implementation, capacity and resources of law enforcers; and proximity with hostile neighbours. Originality/value Rare studies discussed this issue in the Pakistani context.

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Financial intelligence unit of Pakistan: an evaluation of its performance and role in combating money laundering and terrorist financing

Cited by 19 publications

References 70 publications

Challenges for financial institutes in implementing robust customer due diligence in Pakistan

Challenges for financial institutes in implementing robust customer due diligence in Pakistan

Technological Advancements and Legal Challenges to Combat Money Laundering: Evidence from Pakistan

The role of information sharing in combating money laundering: the importance and challenges of mutual legal assistance for developing jurisdictions like Pakistan

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