Money-laundering risk and preventive measures in Pakistan (original) (raw)
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Journal of Money Laundering Control, 2021
Purpose The efficient and strong financial system is considered as the backbone of the economy to function properly along with to attract international capital flow, investment and employment. But, on the other hand, weakness in the financial system will create negative impacts on the economy by sabotaging society’s trust in the financial system. In Pakistan, the key component of the financial sector is the banking sector including conventional and Islamic banking. Pakistan is among the pioneer of the Islamic banking sector, its share of 15.6% deposits in the total banking sector. This paper aims to analyze the effectiveness of anti-money laundering (AML) legislation in the Islamic banking sector of Pakistan. Design/methodology/approach The study is doctrinal legal research. The semi-structured interview approach for analysis have been adopted to analyze the materials used in the study to attain the objective. The survey approach was used in critically analyzing the effectiveness of...
Money laundering is a global issue causing threats to the security and stability of countries around the world. There are different means and methods used for money laundering all over the world. The purpose of this study is to define money laundering with special reference to Pakistan. The study starts with the delineation of the concept "Money Laundering", its stages, methods to carry out such and its impact on national, regional and global socioeconomic indicators. It discusses money laundering in Pakistan and significant channels that are deeply rooted in it. It analysis the loopholes in the previous laws, flaws in prosecuting agencies, and administrative drawbacks that permeated this issue on Pakistani soil. In the last part, this study discussed the current legal setup dealing with money laundering and finally review the legislation and agencies in Pakistan concerning Money Laundering.
2020
ARTICLE DETAILS ABSTRACT History: Accepted 22 May 2020 Available Online 30 June 2020 The main objective of this article is to discuss, review and analyze money laundering and terrorism financing simultaneously as both share common incentives, line of action and executing strategies. Money laundering and financing of terrorism are global problems which not only threaten security but also compromise the stability, transparency and efficiency of financial systems, thus undermining economic prosperity and peace of a country. This research defines and expounds the terms ‘money laundering’ and ‘terrorism financing’, and common strategies to execute both of these criminal activities. It also analyzes the current predicament of legal, administrative and judicial skeleton of Pakistan which makes the country more vulnerable to money laundering and terrorism financing. Furthermore, it would also provide its readers with the most needed reforms in the all-over blueprint of the country, and impe...
2020
Conceptualisation and operationalisation…………………………………………………....9 Methodology, data collection and sampling strategy..……………………………………...11 Literature review……………………………………………………………………………11 Interviews…………………………………………………………………………………...12 Documentary analysis………………………………………………………………………13 Researcher positionality…………………………………………………………………….15 Limitations of the study……………………………………………………………………..16 1.4 Project overview…………………………………………………………………………….17 Chapter 2: Re-reading power inside the AML-CTF regime…………………………………….19
The Effectiveness of Anti Money Laundering Regulations of Malaysian Commercial Banks
International Journal of Academic Research in Accounting, Finance and Management Sciences
Money laundering has now been designated as a global crime, requiring the development of global strategies and policies to combat it. As a result, global courts should be established to hear all money-laundering cases and make informed decisions on punishments and penalties. The objective of this research is to assess the effectiveness of anti-money laundering (AML) regulations in Malaysian commercial banks. Customer record-keeping, suspicious transaction reporting, and employee training are three predictors that have been expected to affect money-laundering activities. Simple random sampling was used to pick the respondents from bank employees in the Klang Valley area. A total of 94 (94%) questionnaires were returned, and the data were analysed using descriptive and multiple regression analysis. The results indicating that customer record keeping, suspicious transaction reporting, and employee training have a significant relationship on money laundering prevention. Money laundering activities could be curbed by concentrating on customer record keeping, suspicious transaction reporting, and employee training. The findings show how the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA) has become a vital gap in combating money laundering. Similar research may be performed in other environments with different money laundering laws and regulations.
The Role of Regulatory Technology & Bankers to Prevent Money Laundering in Bank
JBMP: Jurnal Bisnis, Manajemen dan Perbankan, 2023
As financial institutions, banks are commonly used as a place for money laundering activity, and most financial institution sends suspicious transaction reports to the Indonesian Financial Transaction Reports and Analysis Center (PPATK). This research aims to examine the impact of implementing regulatory technology (regtech) and the role of Anti Money Laundering (AML) officers in money laundering prevention in a bank. This research used explanatory research to test hypotheses; the primary data for this study was collected through a questionnaire distributed to 689 Anti Money Laundering (AML) officers in Indonesia; 296 respondents filled out the questionnaire with a response rate of 42.9%. The multivariate analysis results show that electronic know-your-customer (KYC) is not significant in money laundering prevention. Transactions monitoring and cost & time has a positive & significant impact on money laundering prevention. Furthermore, there is a positive & significant effect between bankers' competency & awareness of money laundering prevention. Regulatory Technology and bankers have an important role in preventing money laundering. Research related to technology & bankers on money laundering prevention is still limited in Indonesia. This study contributes to the current literature on anti-money laundering and the advancement of anti-money laundering systems.
Global Anti-Money Laundering and Combating Terrorism Financing Regulatory Framework: A Critique
Money launderers prefer to use financial services as the ideal medium to launder. The study aimed to provide an overview of the global AML/CFT regulations, application and how they should evolve in this dynamic environment. To gather more insight, a qualitative study was undertaken with relevant documents analysed. The main findings were: country implementation of the global AML/CFT regulations differed due to political and economic factors amongst others. While the various AML/CFT enforcements done by sampled countries were mainly cease and desist orders and monetary penalties which were publicized; and drawbacks of global AML/CFT regulations centered on application of these regulations and emerging trends. These include among other definitions of money laundering, reference to the three stage of money laundering, link between penalty and violations, technological innovations and regulations paradigm shift, cyber-attacks and data privacy. The study contributes to application and gr...
Money Laundering/Financing of Terrorism Risks in the Indonesian Islamic Banking System
Proceedings of the 3rd International Conference of Islamic Finance and Business, ICIFEB 2022, 19-20 July 2022, Jakarta, Indonesia
The Anti-money laundering/counter financing of terrorism (AML/CFT) rules of several jurisdictions with a robust Islamic finance existence, like Indonesia, are relatively weak, and international standards of AML/CFT measures make no unique arrangement for the Islamic banking system. Moreover, there are still limited parallel studies on the Islamic banking system. This paper aims to present the actual money laundering/financing of terrorism risks of the Islamic banking system's specific features, namely (i) the principle of fully care, not speculative and not manipulative; (ii) the relationship between customers and financial institutions; (iii) the complexity of Islamic banking products. Such research objective will be achieved by performing a descriptiveanalytical utilizing document and content analysis from Indonesian experience to examine whether the existing international standards are applicable and adequate for the Islamic banking system. This paper found that a more comprehensive awareness of the money laundering/financing of terrorism risks in the Islamic banking system should be developed to customize reassuring efforts to cultivate the integrity of Islamic banks and ensure the industry against money laundering/financing of terrorism. Furthermore, the Islamic banks should build additional mechanism in determining the money laundering/financing of terrorism risks and implement precautionary standards customized to the nature of their products and services.
Journal of Accounting and Finance in Emerging Economies, 2020
Purpose: Recent media reports of money laundering through fake bank accounts implicate the involvement of banks in money laundering through "managed bank accounts". Further the waivers of loan of apparently sound institutions also give rise to specific questions and reservations on the role of banks. This paper attempts to explore the answer to those fundamental questions. Design/Methodology/Approach: The research follows qualitative content analysis methods to critically analyze the role of banks in money laundering and loan waiver policies. Findings: The research finds that despite of heavy banking regulations and laws the banking accounts are being used for money laundering. Further, the research concludes that the act of waiving off loans allegedly has provided a channel to misuse the public earned money, resulting in gross loss to the public exchequer. Implications/Originality/Value: The research concludes that the role of bank in maintaining the fake/idle accounts an...