Anti-Money Laundering (AML) Regulations in Pakistan and Afghanistan: Challenges, Legal Frameworks, and Policy Recommendations

Abstract

This paper critically examines the Anti-Money Laundering (AML) frameworks in Pakistan and Afghanistan, analyzing their compliance with international standards, institutional capabilities, and legal reforms. It explores the historical and contemporary challenges posed by money laundering and its nexus with terrorism financing, with a focus on sociopolitical and economic dimensions. This study identifies key gaps in policy implementation, institutional weaknesses, and political interferences using qualitative methodologies, including thematic content analysis and case studies. Comparative analyses reveal unique deficiencies in both nations, compounded by porous borders and corruption. The paper concludes with actionable recommendations aimed at enhancing institutional independence, fostering cross-border cooperation, and aligning domestic AML efforts with international best practices.