BANKING LAW AND

PRATICES
PRESENTED TO: SIR KHALIL RAO
PRESENTED BY:
HARIS MASHOOD
ALI HUSNAIN ABBASI
ABID AWAN
USMAN ZAHID

L1F10MBBF2016
L1F10MBBF0032
L1F10MBBF2037

L1F10MBBF2035

MONEY LAUNDERING

Money Laundering
Disguising

the origins of illegally-obtained money.

Criminal

acts, including drug dealing, corruption,

accounting and other types of fraud, and tax evasion.
Two

to five percent of the worldwide global economy

involved laundered money.
FATF

does not publish any figures in this regard

History of Money
Laundering
Originate

from Mafia ownership.

Purchasing
To

outwardly legitimate businesses.

mix their illicit earnings with the legitimate earnings.

Attracted
huge

interest in the 1980s.

profits they earned from drugs, could contaminate and

corrupt the structures of the state at all levels.

Stages of Money
Laundering:
Placement
Layering

and

Integration

Characteristics of
money laundering
(ML)
Group
Once

activity

began no end

No

boundaries ,internationalized

NO

one shot transaction ,a chain of transactions

sophisticated

and complex process.

Affects On financial sector

Banking and non- banking institution

Money

Laundering
Impairs
Sustainability
&
development
of
financial institutions two ways

Correlation

& Fraudulent activities

Level Of Social capital

Affects Of Money Laundering

on Real sector
Adversely

Affect to Economy Growth

Sterile Investments
Channels Other than Financial
Institutions
Sub-Optimal Allocation of resources

Affects Of Money Laundering on

External Sector
Impair

Activity Through Trade and

International Capital Flow
Excessive Illicit Capital Flight
Drains Scarce Resources
Negative Affects
Distortion of Country Imports And
Exports

Negative Externalities Of Money

Laundering For Formal Agents

Multiple Affects
Negative Implications
Research of Scholars, Professional
experts

Research Of Scholars and

Professional Experts

Destabilize Economy Of The Country

Causes Financial Crisis
Give Impetus to Criminal Activities
Discourages Foreign Investors
Increases Corruption Both At National
And International Level

Role of International
Institutions against Money
Laundering in Pakitan
A)

International Monetary Fund (IMF)

B)

World Bank

C)

Asian Development Bank (ADB)

(A) International Monetary Fund

(IMF)
IMF has intensified its efforts against money laundering to
assess and strengthen international financial systems
through multiple efforts and facilitated in part by the
development of the Financial Sector Assessment
Programme (FSAP) and its Offshore
Centre Assessment Programme.

(B) World Bank

The world bank has recently completed a
phase with the SECP on strengthening AML
environment in Pakistan

(C) Asian Development Bank

(ADB)
Asian Development Bank is currently working
closely with SBP to create a structure and
devise regulation for effective AML
enforcement in Pakistan

Anti Money Laundering

Law in Pakistan
In

Pakistan anti money laundering Law 2010 is applicable right now

The

main object of this act (Anti money laundering act 2010) is to

enfroce proper legislation to ensure proper investigating,
cirminatizing and prosecuting of money laundering offence.

The act pulls together necessary elements within the Pakistani

legal structure, who were previously working to a great extent
in isolation to prevent money laundering in the country.

Now in Pakistan Anti-Money Laundering Law 2010 is

applicable. State bank of Pakistan is giving full efforts to stop
money laundering in Pakistan by the help of Anti-Money
Laundering Law 2010, which is enacted In Palistan by the
assembly. All the agencies of Pakistan like For example
agencies like NAB, Anti narcotic agency, FIA (Federal
Investigation Agency), SECP (Security Exchange Commission
of Pakistan) they all are keeping an eye on Money laundering
and providing their services to control money laundering in
Pakistan.

Agencies in Pakistan
controlling money laundering:
In Pakistan there are few agencies
who are keeping a strict eye on
money laundering in Pakistan.for e.g.
like NAB,FIA,SECP,they all are
keeping an eye on money laundering
and providing there service to control
money laundering in Pakistan

MONEY LAUNDERING COUNTER

MEASURE:

Money laundering being a potential

threat to different stakeholder of
financial system has facilitated many
of the formal agents and principal to
make joint effort to counter this
menace.

CONCLUSI
ON :

In view of above discussion it is

included that the existing strategy of
the principal is sub optimal and qusai
sustainable as two of the integrating
partners of this system of money
transaction i.e.principal and agents
may corporate and work jointly to
make laws rules and attempt to
implement these laws so as to make
money transaction more transparent

RECOMMENDATION:

The international financial regimes

may make more conductive laws and
procedure that enable clients to get
money transaction in shorter time
and with lesser cost as long as the
difference in the cost and benefit
increase the non-cooperation
increases. or other alternatives laws
and procedure may reduce the
present value of marginal cost of