Abstract:
Purpose -
The primary purpose of this study is to comprehend and determine the impact ML (Money
Laundry) has on the economy and specifically on the banking industry of Pakistan. Also, the
measures adopted by banks to counter it. Since 9/11 money laundering has been highlighted
and given grave prominence as it is one of the biggest corporate crimes and has huge impact
on the economies of countries. Our focus will be primarily on Pakistan but we will visit other
countries that have been affected by ML.
Methodology -
The methodology adopted for gathering information/data for this research has been through
questionnaire. The number of people for this paper from whom data has been gathered or
who filled the questionnaire is 100. We ensure that these individuals are professional bankers
who are designated in the department ofAML or branches. The questiomiaire was based on
close ended questions. Close ended questions have variables for supporting our argument for
the thesis that included the following:
Means of knowing your customers
Policies ofAML
Raising STR (suspicious transaction reporting)
Internally adopted systems to control ML
Programs/trainings for staffto raise awareness
Above stated are the primary variables we further incorporated laws recently implemented
locally and internationally for assessing banks to efficiently combat the threat of Money
Laundering.
Findings -
After completing the analysis on the subject, we were able to understand that banks are
pushing their limits and adopting comprehensive tools to combat ML. Also, the regulatory
body of Pakistan, SBP, is also emphasizing on assuming international regulations to further
strengthen Pakistani banking industry. Even though measures are being taking by banking
industry to improve AML still there is a need to do a lot more. They need to
implement/improve/adopt advance technology for insuring that they are able to mitigate this
threat ofML.
Practical implications -
This study’s outcome will facilitate the banks and regulatory body to create policy and
procedures that will further strengthen controls for combating any money laundering that
takes place in the country. Through stringent policies and procedures Banks will be able to
understand the significance of understanding their customers, their sources of income and
ensure banks are not misused for money laundering.
