Money laundering and terror financing: issues and challenges in Pakistan
| DOI | https://doi.org/10.1108/JMLC-11-2020-0126 |
| Published date | 19 August 2021 |
| Date | 19 August 2021 |
| Pages | 181-194 |
| Author | Munir Ahmad Zia,Rana Zamin Abbas,Noman Arshed |
Money laundering and terror
financing: issues and
challenges in Pakistan
Munir Ahmad Zia
Dig Police Baluchistan, Pakistan
Rana Zamin Abbas
Department of Management, University of Management and Technology,
Lahore, Pakistan, and
Noman Arshed
Department of Economics and Statistics,
University of Management and Technology, Lahore, Pakistan
Abstract
Purpose –Pakistan is facing the momentous hazardof money laundering and a substantial risk of terror
financing, whichare seriously threatening its socioeconomic well-being.The purpose of this paper is to gauge
the challenges posed by thesethreats in contrast with the existing potential and expertiseof legal entities. It
also examines legal and proceduralmeasures enforced as a counter-strategy for terror financing and money
launderingand the AMLA 2010 and National Action Plan (NAP) for countering terrorismfinancing.
Design/methodology/approach –This paper uses an analyticaland 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 launderingregimes are confronted with grave legal and procedural odds,
noncooperation and performanceissues and conflicts of interest on the part of the enforcers/politicians.This
paper highlightsthe issues that seriously jeopardize strategiesto stop money laundering and terror financing,
such as geography, informalfinancial transfers and exchange systems, un-regulated charities and real estate
sectors,the modest performance of enforcement agencies and lukewarm politicalsupport 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 exploringthe shortcomings and
insights. This will provide useful information for legal and financial practitioners, academicians, research
scholars,policymakers and journalists.
Keywords Money laundering, Regulatory mechanism, Enforcement agencies, Terror financing,
Hawala/Hundi, Suspicious transaction reports
Paper type Research paper
1. Introduction
The dread caused by the dangers of money laundering can be traced to the origin of
globalization (Alldrige, 2008).Magen (2018) echoed the ideas that quick growth in financial
information, and technological and communication developments allow money to be
transferred globally with easeand speed. Money laundering and terror financing are illegal
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.
Money
laundering and
terror
financing
181
Journalof Money Laundering
Control
Vol.25 No. 1, 2022
pp. 181-194
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-11-2020-0126
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1368-5201.htm
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