Anti‑Money Laundering (AML) and Counter‑Financing of Terrorism (CFT) frameworks in Pakistan are governed by a combination of national legislation and international obligations. The core statutes include:
- Anti-Money Laundering Act, 2017 (AMLA) – aligns Pakistani law with FATF recommendations, mandating customer due‑diligence, transaction monitoring and reporting for financial institutions.
- Counter‑Terrorism Financing Act, 2018 – extends AMLA provisions to non‑banking entities such as NGOs, real‑estate firms, and retail businesses, requiring them to monitor suspicious movements of funds.
- Banking Regulations – sets the reporting thresholds for banks and mandates the maintenance of audit trails.
How to Protect Yourself
- Verify Identities – Ensure that all parties you transact with provide government‑issued IDs and that these are cross‑checked against official databases.
- Document Everything – Keep signed receipts, contracts, and transaction records in both electronic and physical formats.
- Flag Suspicious Activity – Report any irregular or large transfers to a financial institution or the Financial Monitoring Unit (FMU) under the AMLA.
- Limit Exposure – Avoid handling cash in bulk for personal or business transactions; opt for traceable electronic payments.
- Use Trusted Channels – Prefer regulated banks, licensed payment service providers, and authorized money‑transfers agencies.
Legal Services Available
Expert lawyers in Pakistan offer a breadth of legal products to defend clients in AML/CFT matters:
- Litigation & Defense – Representation in criminal proceedings, civil suits, banking courts, and regulatory investigations.
- Compliance Audits & Gap Analysis – Custom audits to identify compliance lapses and development of remedial action plans.
- Regulatory Filing & Liaison – Preparation and submission of suspicious transaction reports (STRs), currency transaction reports (CTRs), and liaison with FMU, Ministry of Finance, and the Capital Development Authority.
- Policy & Procedure Development – Drafting or revising internal policies to map FATF standards, should be updated annually.
- Appeal & Mediation Services – Handling appeals against regulatory penalties.
Engaging specialized legal counsel not only shields you from severe penalties but also facilitates more efficient compliance, safeguarding your reputation and business continuity.
