Pakistan's National Executive Committee on Anti-Money Laundering and Countering the Financing of Terrorism approved three major measures on 27 October to broaden the country's financial oversight framework.
The National Executive Committee on Anti-Money Laundering and Countering the Financing of Terrorism included maritime piracy as a predicate offence under the Anti-Money Laundering Act, 2010 (AMLA). Maritime piracy is currently defined under section 28 of the Pakistan Maritime Zones Act, 2023.
Section 29 of that act already mandates prison sentences of up to ten years for piracy, with more severe penalties applied if murder occurs. Under section 4 of the AMLA, money laundering carries a potential prison term of ten years, a fine of up to Rs25 million, and the forfeiture of assets.
The National Executive Committee on Anti-Money Laundering and Countering the Financing of Terrorism also recognised the Pakistan Virtual Assets Regulatory Authority (PVARA) as an AML/CFT regulator. This recognition involves placing PVARA into Schedule IV of the AMLA.
The National Executive Committee on Anti-Money Laundering and Countering the Financing of Terrorism raised the threshold for reporting currency transactions from Rs2 million to Rs3 million. A proposal exists to extend AML investigative powers to provincial anti-corruption establishments.
Any such expansion must adhere to Articles 4, 10A, 14 and 24 of the Constitution, which mandate legality, due process, privacy, and protection against arbitrary property deprivation.
