Committee approves review of currency transaction report threshold to curb money laundering

ISLAMABAD: Important steps have been agreed in Pakistan to bring the system for preventing money laundering and terror financing in line with modern financial risks.

A meeting of the National Executive Committee on Anti-Money Laundering and Countering the Financing of Terrorism was chaired by Federal Finance Minister Muhammad Aurangzeb. It reviewed ways to make financial monitoring more effective, amend the relevant laws and improve institutional capacity.

Committee’s decisions

According to a statement issued after the meeting, the committee approved the proposed review of the currency transaction report threshold. The aim is to improve the way financial transactions are monitored in line with current risks and needs.

The statement said the committee also approved the inclusion of Section 28 of the Pakistan Maritime Zones Act in Schedule I of the Anti-Money Laundering Act. It also approved the inclusion of the Pakistan Virtual Assets Regulatory Authority in Schedule IV of the Anti-Money Laundering Act. This is being described as an important development for financial monitoring and the regulatory framework for virtual assets.

The meeting also considered the performance and institutional capacity of the Financial Monitoring Unit (FMU) and steps to strengthen the monitoring system further. The committee also reviewed measures on the use of Artificial Intelligence and machine learning to prevent financial crimes. The possibility of using these technologies to identify suspicious financial activity and improve the monitoring of transactions was discussed.

Federal Finance Minister Muhammad Aurangzeb stressed the need for strong coordination between the relevant institutions, timely follow-up and effective implementation of decisions. He also directed that a clear roadmap be prepared to further strengthen the FMU’s capabilities.

According to the statement, the meeting reaffirmed that Pakistan’s framework for preventing money laundering and terror financing will be kept in line with changing financial risks. Steps to improve the capacity of the relevant institutions will continue.