"A STUDY ON BANK'S ROLE TO ENCOUNTER MONEY LAUNDERING IN PAKISTAN" (STUDY ON ANTI MONEY LAUNDERING SYSTEM OF BANKING SECTOR) BY SHAMSA SHAHEEN 30567

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.