Abstract:
PurposerMajor aim of this study was to understand the impact of money laundering on the
economy and the sources used to the banking sector in Pakistan to combat against it. Since
money laundering is becomes one of the biggest corporate crime and in now a days it badly
impact the growth of commercial banks operating all over the world.
Methodology/ Sample:The study was made on the basis of questionnaire filled by 100
respondents who are professional bankers working in Anti MoneyLaundering department of
the bank and the people working in branch operation. The research was conducted by asking
close ended questions Closed end questions comprises of different variables that support the
argument of the thesis which includes tools of customer identification used by the banks,
AML policy, reporting of suspicious transactions, internal control system and training and
awareness programs. Further recent domestic and international laws/regulations were also
taken in to consideration for determining the efficiency of banking sector in combating
against money laundering.
Findings :The analysis and comparative results shows that banking sector is adopting more
comprehensive tools for combating against money laundering. Further State Bank of Pakistan
is also adopting the international regulations in order to strong controls of the bank operating
in Pakistan. However the current practices perform by banks and the regulations issued by
State Bank of Pakistan could be improvement by adopting the new technologies and
strategies that might easier for banks to adopt and implement in their processes.
Significance of the study:The outcomes of this research might help the bankers and the
banking regulators to formulate their policies and procedures in such a way so that easy to
implement and more customer oriented. Moreover the same could become more effectively
use against money laundering.
