Money laundering


Money laundering is a rapidly developing crime in the contemporary world and a mammoth danger to the financial matters of the developing nations. Simply stated, in straightforward terms, it can be characterized as such a strategy whereby illicit funds are moved starting from one spot then onto the next, to cover its tracks. The Financial Action Task Force (FATF) recognizes it as the preparation of criminal proceedings to mask their illegal origins. Money laundering is said to have made serious damages to a nation’s economy, alongside affecting people from around the globe.

Globally, the action plan against money laundering initially started back in the 1970s when Bank Secrecy Act was passed in the United States. However, the situation for Pakistan deems to be quite different, anti-money laundering bills were first introduced in the 2000s. Several steps have been made trying to control money laundering. Nonetheless, it is widespread in the nation and this can be credited to the powerless enforcement of laws and escape clauses in the current system.

Pakistan had been on the FATF “blacklist” for quite a long time before it was withdrawn in 2015 after noteworthy progress in confronting terror financing. Furthermore, in June 2018, Pakistan was included in FATF’s “grey list” which has had a detrimental impact on Pakistan’s market.  Financial institutions have been hesitant to conduct businesses with Pakistani organizations. This, thus, would affect trade and further increase Pakistan’s current account shortfall. Businesses are likewise seriously influenced by money laundering as it deters investors. Besides, it is additionally expressed that international banks can also haul their business out of Pakistan because of the consideration in the “grey list”.

Given that, the nation can likewise be included for FATF’s ‘blacklist’, further messing up overseas Pakistanis, financial Institutions, and among others, investors as well. To be excluded from the ‘grey list’, Pakistan is confronted with the dire obligation of distinguishing terrorist financing and ending it.

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