Pakistan Updates AML-CFT Framework, Includes Virtual Asset Regulator

Pakistan is updating its financial crime framework to address changing risks in the financial system, including suspicious transactions, emerging technologies and the oversight of virtual assets.

Finance Minister Muhammad Aurangzeb chaired the 19th meeting of the National Executive Committee on Anti-Money Laundering and Countering the Financing of Terrorism on October 27, where officials reviewed implementation progress and approved several proposed regulatory changes.

The committee approved revisions to currency transaction reporting thresholds and amendments concerning the Pakistan Maritime Zones Act, 2023. It also approved the inclusion of the Pakistan Virtual Assets Regulatory Authority in the relevant schedule of the Anti-Money Laundering Act.

The meeting placed particular emphasis on institutional coordination and the analytical capacity of the Financial Monitoring Unit, which plays a role in examining financial intelligence and suspicious transaction information.

The decisions reflect the need to keep regulatory systems aligned with changes in how money moves through conventional financial channels and newer digital platforms.

For banks, financial institutions and other regulated entities, effective implementation will require clear guidance, appropriate reporting systems and coordination with the authorities responsible for enforcement.

The committee also stressed the importance of monitoring implementation rather than relying solely on changes to laws and procedures.

The approved measures represent a further step in strengthening Pakistan’s anti-money laundering and counter-terrorism financing arrangements. Their effectiveness will ultimately depend on enforcement, institutional capacity and the timely exchange of financial intelligence.