Pakistan brings virtual assets regulator under anti-money laundering law

Pakistan has approved changes that formally bring its virtual-assets regulator and a provision of its maritime law within the scope of the Anti-Money Laundering Act, a move officials described as a response to evolving financial risks and new technologies.

The National Executive Committee on Anti-Money Laundering and Countering the Financing of Terrorism took the decision at its 19th meeting, held at the Finance Division and chaired by Finance Minister Muhammad Aurangzeb. Under the approval, the Pakistan Virtual Assets Regulatory Authority will be added to Schedule IV of the AMLA, while Section 28 of the Pakistan Maritime Zones Act, 2023, will be included in Schedule I. Both TechJuice and ProPakistani reported the same two changes and the same schedule placements.

ProPakistani described the NEC as a high-level body that oversees policy and implementation matters relating to Pakistan's AML-CFT regime. The committee reviewed compliance with decisions taken at its 18th meeting as well as overall progress on the framework, according to the reports.

Members said the framework must keep pace with evolving financial risks and emerging technologies, and called for stronger analytical capability at the institutions involved.

Aurangzeb asked that the analytical and operational capacity of the Financial Monitoring Unit be improved through a clear implementation roadmap with defined timelines. He also emphasised timely coordination and cooperation among relevant institutions so that the measures discussed are actually implemented, the reports said.

According to ProPakistani, the minister described the NEC as an effective strategic forum for strengthening the country's AML-CFT framework, saying it helps ensure timely coordination, inter-agency cooperation and consistent monitoring.

The committee's approval adds to a list of schedule amendments rather than creating a new law, and the reports did not give a date for when the changes take effect or say what specific obligations the two additions will trigger for the entities concerned. Neither outlet reported any dissent at the meeting, and no further details of the discussion were made public.

Pakistan's AML-CFT framework has been under international scrutiny for years, with the Financial Action Task Force keeping the country on its increased monitoring list until 2022. The Financial Monitoring Unit, which sits under the Finance Division, is the country's financial intelligence unit and is responsible for receiving and analysing suspicious transaction reports.