Pakistan moves to bring virtual assets regulator under anti money laundering law

Pakistan has approved proposals to bring the Pakistan Virtual Assets Regulatory Authority under the country’s anti money laundering law

Islamabad:  Pakistan has approved proposals to bring the Pakistan Virtual Assets Regulatory Authority under the country’s anti money laundering law framework and include a provision of the Pakistan Maritime Zones Act, 2023, in the law used to combat money laundering.
The decisions were taken at the 19th meeting of the National Executive Committee on Anti Money Laundering and Countering the Financing of Terrorism, chaired by Finance Minister Muhammad Aurangzeb at the Finance Division.

The committee also approved a proposed revision to the reporting thresholds for Currency Transaction Reports, which are used to monitor financial transactions. However, the announcement did not specify the new thresholds or explain how much they would change.

The meeting reviewed progress on decisions taken during the committee’s 18th meeting and examined the performance of the Financial Monitoring Unit, the capacity of relevant institutions and the use of artificial intelligence and machine learning to strengthen financial monitoring.

The National Executive Committee is a high level body responsible for overseeing policies and their implementation under Pakistan’s system to prevent money laundering and the financing of terrorism.

Under the decisions announced after the meeting, the committee approved the proposed inclusion of Section 28 of the Pakistan Maritime Zones Act, 2023, in Schedule I of the Anti Money Laundering Act. It also approved the proposed inclusion of the Pakistan Virtual Assets Regulatory Authority, known as PVARA, in Schedule IV of the same law.

These approvals concern proposed changes to the legal framework. The announcement did not say that all required legal steps to bring the changes into force had been completed.

The committee also considered the rules used to analyse Suspicious Transaction Reports and Currency Transaction Reports. Suspicious Transaction Reports can help authorities examine financial activity that may require further investigation, while Currency Transaction Reports cover transactions that meet prescribed reporting conditions.

The finance minister stressed that institutions responsible for implementing the framework must follow up on decisions regularly and on time. He called for stronger coordination among government bodies so that approved measures could be put into practice effectively.

Aurangzeb also called for improvements in the analytical and operational capacity of the Financial Monitoring Unit, which examines financial information and supports efforts to identify possible illegal activity. He said a clear implementation plan with defined timelines was needed to improve the unit’s performance.

The committee discussed the need to keep Pakistan’s financial crime controls ready to respond to changing risks and new technologies. The use of artificial intelligence and machine learning was among the initiatives reviewed to improve the ability of relevant institutions to analyse financial information.

The finance minister said the committee provides a strategic platform for improving Pakistan’s anti money laundering and counter terrorism financing system through cooperation between institutions, regular monitoring and timely implementation.

The meeting was attended by the federal minister for law and justice, the governor of the State Bank of Pakistan, the finance secretary, the chairman of the Securities and Exchange Commission of Pakistan, the director general of the Anti Money Laundering and Countering the Financing of Terrorism Authority, and senior officials from the Financial Monitoring Unit and other relevant ministries and divisions.