Financial intelligence unit of Pakistan: an evaluation of its performance and role in combating money laundering and terrorist financing

Abstract

PurposeThis study aims to determine the performance of the Pakistani financial intelligence unit in combating money laundering/terrorist financing in local and global contexts.Design/methodology/approachThe study used a qualitative research design. The objective is achieved by critically examining the Anti-money Laundering Act and its relevant clauses concerning the financial monitoring unit and other related legislation. Further, empirical data was collected through semi-structured interviews with chief compliance officers from regulated entities, regulators and premier law enforcer.FindingsThe performance of the financial monitoring unit has severe issues concerning the dissemination of financial intelligence due to its time taking behaviour, non-sharing of feedback with reporting agencies, dearth of international cooperation, lack of trained and relevant personnel and financial constraints.Originality/valueTo the best of the authors’ knowledge, this is a maiden study concerning financial monitoring unit in Pakistan.