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Analyses the alternative and informal remittance systems that characterise many Asian transactions; they are also known as informal value transfer systems, underground banking systems and so on: unlike money laundering, they are not based on deception and may indeed be licensed. Traces the origins of these systems, which are of two main types: the Chinese fei chi’en system and the Indian hawala/hundi system. Describes the two systems, and goes on to the reasons for their growing popularity: the increased migration of Asian populations to the rest of the world, the systems’ perceived efficiency, timeliness, cost effectiveness and lack of bureaucracy, the remoteness from banks of some areas, the desire of the Chinese to conceal wealth, and insufficient supply of foreign exchange in some countries.

Terrorism finance (TF) has been aptly termed as the lifeblood of terrorism. TF provides funds for terrorist activities. Terrorists mobilize funds by using the formal banking system, informal value-transfer systems, hawalas, Hundis, and the oldest method of asset transfer. They may raise funds from legitimate sources, such as personal donations and profits from businesses and charitable organizations, as well as from criminal sources, like the drug trade, the smuggling of weapons and other goods, fraud, kidnapping, and extortion. Countering the financing of terrorism is a far greater challenge throughout the world. The objectives of the chapter are as follows: (1) to identify the different sources of terrorism financing, (2) to analyze various ways of moving terrorism funds globally, and (3) to examine the initiatives taken to counter terrorism financing.

The purpose of this paper is to examine the effectiveness of anti-money laundering/combating of financing of terrorism (AML/CFT) measures in Pakistan. Key variables of AML/CFT regulations of Pakistan are used. This study explores the impact of customer due diligence, record keeping, wire transfers, correspondent banking, reporting of transactions, new technology and internal controls/compliance/trainings on money-laundering risk.

Data is collected with the help of questionnaires developed in light of Financial Actions Task Force (FATF) recommendations and the AML/CFT regulations of Pakistan.

Results show that customer due diligence, correspondent banking and new technology may help control money-laundering risk in Pakistan, whereas impact of record keeping, wire transfers and reporting of transactions did not have an effect on money-laundering risk. This study suggests a better implementation of these measures.

The current study was limited to Pakistani banks. For more conclusive results, future studies should replicate similar studies in other countries.

Findings of this study may help the State Bank of Pakistan in taking measures to simplify the process of implementing FATF rules and regulations regarding AML/CFT, regular monitoring and trainings to the staff of banks and development finance institutions in customer due diligence, correspondent banking and new technology. Further, it helps to take appropriate measures in resolving banks-specific issues related to AML/CFT.

Effective AML/CFT control measures would strengthen socio-economic growth in a country. Further, formalization, compliance and integrity would eliminate money laundering risk. It would create an economy that works with equity and promotes transparency.

This research paper supports implementation of AML/CFT regulations, proper monitoring and novel supervision of banks.

Pakistan is facing the momentous hazard of money laundering and a substantial risk of terror financing, which are seriously threatening its socioeconomic well-being. The purpose of this paper is to gauge the challenges posed by these threats in contrast with the existing potential and expertise of legal entities. It also examines legal and procedural measures enforced as a counter-strategy for terror financing and money laundering and the AMLA 2010 and National Action Plan (NAP) for countering terrorism financing.

This paper uses an analytical and comparative method using figures and comparative data on the success of the NAP and AMLA 2010 as national counterterrorism strategies. Terror financing and anti-money laundering regimes are confronted with grave legal and procedural odds, noncooperation and performance issues and conflicts of interest on the part of the enforcers/politicians. This paper highlights the issues that seriously jeopardize strategies to stop money laundering and terror financing, such as geography, informal financial transfers and exchange systems, un-regulated charities and real estate sectors, the modest performance of enforcement agencies and lukewarm political support for the NAP.

The situation requires the improvement of weak legislation and poor coordination and the adaptation of technological advancements and novel counter-strategies, along with properly trained enforcement personnel.

This paper will prove to be a valuable reference for exploring the shortcomings and insights. This will provide useful information for legal and financial practitioners, academicians, research scholars, policymakers and journalists.

The purpose of this paper is to analyse the unintended consequences, financial exclusion, of counter-terrorism financing regulations in terms of their impact on financial inclusion and, consequently, the creation of an ineffective counter-terrorism financing framework. A further aim is to make recommendations to mitigate these unintended consequences.

This subject is examined by using the practices of a range of countries and organisations. The interdisciplinary approach of the paper is highlighted, which comprises criminal law, banking law, international law and human rights law.

Financial exclusion is a focal point that results in ineffective counter-terrorism measures which are caused mostly by the formal financial sector, in particular, the banking system. The financial exclusion also leads to counter-productive counter-terrorism financing through a low risk-appetite, de-risking, de-banking, financial exclusion and using unregulated or less-regulated and supervised financial systems.

No article comprehensively analyses financial exclusion as a consequence of counter-terrorism financing framework. The paper examines the process of counter-terrorism financing regulations, which leads to financial exclusion. In addition, the impact of financial exclusion on all relevant actors, such as individuals, correspondent banking relationships, money and value transfer services, charities and virtual currencies, is examined.

This study aims to determine the applicability of the placement-layering-integration model of money laundering (ML) in the South Asian context with emphasis on Pakistan by analysing different ML typologies.

This study applied content analysis in the first step. It explored three primary documents concerning ML typologies: Asia Pacific Group’s yearly reports on ML typologies from 2010 to 2021, the mutual evaluation reports and the National Risk Assessment of Pakistan. In the second step, expert interviews were recorded, and NVivo was used for data management and analysis.

This study found primary predicate offences: corruption, tax crimes, smuggling and drug and human trafficking. Pakistani launderers often use traditional typologies, including cash smuggling, round-tripping, multiple bank accounts, investment in real estate (in Pakistan and Dubai) and hawala. However, cybercrimes, cyber laundering and trade-based ML are rising. The politically exposed persons are involved in most of the laundering cases.

Rare studies specifically address the south Asian typologies and the limitations of the placement, layering and integration model. Therefore, there is a need to understand the current typologies used in developing, less regulated and undocumented jurisdictions like Pakistan.

Corruption can take many forms. One of the most alarming aspects of corruption has been the impact of money laundering on financial markets. The amount of money laundered in the Asian region is estimated at approximately $200 billion, or one-fifth the global total. Some of the Asia-Pacific countries still lack any consistent anti-money laundering legislation. The Asia-Pacific region is also home to five of the six remaining non-cooperative countries and territories on The Financial Action Task Force's 2004 list. In this paper, I present a clinical examination of the impact of money laundering and Off-shore financial centres on Asian Pacific financial markets. I describe the money laundering cycle, tools and techniques utilized in the Asia-Pacific region as well as anti-money laundering measures and regulation.

The purpose of the study is to examine the available literature to comprehend what the underground banking system is, for what purposes this method is used and how policymakers should proceed to address this issue.

The approach involved conducting this study and combining it with a critical analysis of the available literature as well as the available historical data. The sources the study has explored include government documents, public hearings, academic articles, case studies and articles available on the internet.

The study revealed prevention of illegal proceeds is critical, still regulating one entity, is a phenomenon of Boyle’s law, “squeezing the balloon”. If one end of the balloon is squeezed, making the volume smaller, the pressure inside increases, making the un-squeezed part of the balloon expand out. The real issue is not how criminals transfer their illegal earnings; it is the criminals themselves. Hence, the policy decision on this issue needs to be carefully considered.

Due to the complexity of the operating system of Undiyal, this study had a number of limitations, as do many others. Firstly, there are no records of the Undiyal agents or the volumes of transactions publicly available. However, comprehending the scope of the underground operation that exists in the country is quite difficult.

The study contributes to the academic researchers grasping what type of future research should be focused on in this area according to the study.

From the point of view of its practical application, the study seeks to resolve social issues that the middle-class population experiences on a daily basis and that have a huge and adverse impact on GDP.

To the best of the authors’ knowledge, this is an original contribution.

This paper aims to inform the readers about the existing financial intelligence tools that are being used by financial intelligence units. It tries to demonstrate, with the help of a literature review, what the limitations of these tools are and how these limitations hinder the potential of the financial intelligence tools for early detection of terrorist financing activities.

The literature review method was adopted to discuss the financial intelligence tools, their limitations and the implications of the limitations for early detection of terrorist financing activities.

It was found that although the financial intelligence tools were introduced with a view to detect terrorist financing activities early, there are some inherent limitations of the tools relating to technical design features and operational procedures that hinder early detection of terrorist financing activities.

The existing financial intelligence tools need to be repaired by removing the inherent limitations of the tools.

The financial intelligence units should take into cognizance the importance of early detection of terrorist financing activities for preventing terrorist attacks and need to redesign the existing tools in such a way that make these tools effective for early detection of terrorist financing activities.

Peace will be established in society by preventing terrorist attacks through early detection of terrorist financing activities.

The originality of the paper lies in identifying the limitations of the existing financial intelligence tools for the early detection of terrorist financing activities.

The purpose of this paper is to examine the link between trade-based money laundering and organized crime. Trade-based money laundering (TBML) has emerged as the newest and possibly most complex method used by organized crime and white-collar crime groups for illegally laundering money in the international financial system. Using legitimate global trade streams, criminal organizations are able to transfer billions of dollars annually between jurisdictions without having to adhere to state-level currency regulations.

Using a rational approach to understanding the behavior of criminal organizations, it is argued that TBML will continue to grow as a preferred methodology for laundering money internationally. As criminal organizations continue to be displaced from the more traditional methods of money laundering, they will look for and find TBML as a viable alternative for moving money between different jurisdictions.

As the methodology becomes more developed, the skill set will transfer to an increasing number of organized crime groups and be incorporated as a mainstream method for laundering and moving money.

To stay current with contemporary money laundering schemes, law enforcement agencies will have to train their investigators to spot, investigate and collect requisite evidence for successful prosecution and disruption of TBML offences. Moreover, in the absence of a global regime for sharing trade and customs information, legislators and law enforcement agencies will have to consider how to best expedite the sharing of trade and customs information.

This is the only study to address TBML as an emerging money laundering technique and the transfer of the skill between organized crime groups. It further details the skills that police investigators needs to develop to successfully combat TBML.