Money laundering and terror financing: issues and challenges in Pakistan
Journal of Money Laundering Control
ISSN: 1368-5201
Article publication date: 19 August 2021
Issue publication date: 3 January 2022
Abstract
Purpose
Pakistan is facing the momentous hazard of money laundering and a substantial risk of terror financing, which are seriously threatening its socioeconomic well-being. The purpose of this paper is to gauge the challenges posed by these threats in contrast with the existing potential and expertise of legal entities. It also examines legal and procedural measures enforced as a counter-strategy for terror financing and money laundering and the AMLA 2010 and National Action Plan (NAP) for countering terrorism financing.
Design/methodology/approach
This paper uses an analytical and comparative method using figures and comparative data on the success of the NAP and AMLA 2010 as national counterterrorism strategies. Terror financing and anti-money laundering regimes are confronted with grave legal and procedural odds, noncooperation and performance issues and conflicts of interest on the part of the enforcers/politicians. This paper highlights the issues that seriously jeopardize strategies to stop money laundering and terror financing, such as geography, informal financial transfers and exchange systems, un-regulated charities and real estate sectors, the modest performance of enforcement agencies and lukewarm political support for the NAP.
Findings
The situation requires the improvement of weak legislation and poor coordination and the adaptation of technological advancements and novel counter-strategies, along with properly trained enforcement personnel.
Originality/value
This paper will prove to be a valuable reference for exploring the shortcomings and insights. This will provide useful information for legal and financial practitioners, academicians, research scholars, policymakers and journalists.
Keywords
Acknowledgements
The authors acknowledge Dr Hasan Murad School of Management, University of Management and Technology in providing opportunities and research facilities in developing this research project.
Citation
Zia, M.A., Abbas, R.Z. and Arshed, N. (2022), "Money laundering and terror financing: issues and challenges in Pakistan", Journal of Money Laundering Control, Vol. 25 No. 1, pp. 181-194. https://doi.org/10.1108/JMLC-11-2020-0126
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited