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CRIMINOLOGY
2018
Q. No. 2. Define Criminology. Discuss the scope of criminology in Pakistan.
Q. No. 3. What is the Islamic perspective on crime and punishment? Explain your answer
with the help of proper examples.
Q. No. 4. What is juvenile delinquency? Explain the nature, extent and causes of juvenile
Delinquency in Pakistan. Suggest remedial measures for reducing juvenile
delinquency in Pakistan.
Q. No. 5. Trace back the history and development of police organization in Pakistan.
Q. No. 6. What is Criminal investigation? Explain the key principles of criminal
investigation.
Q. No. 7. To what extent Interpol has been successful in reducing organized crime at
International level. Discuss
Q. No. 8. Intelligence-led policing has become an effective model of policing in tackling
Organized crime. Discuss the background and key principles of intelligence-led
Policing.
Q. No. 9. Discuss the laws and institutional arrangements for controlling money laundering
in Pakistan.
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Q. No. 2. Define Criminology. Discuss the scope of criminology in Pakistan.
Criminology is the study of crime from a social perspective, including examining who commits crimes,
why they commit them, their impact, and how to prevent them.
Criminology is a branch of sociology, which traditionally examines human behavior, interaction, and
organization. However, it also ties and concepts from other areas of study, such as philosophy,
anthropology, biology, and psychology.
Criminologists examine a broad range of topics related to crime. They are dedicated to studying not only
the causes of crime but the social roots and impact as well.
The end goal of criminology is to determine the root causes of criminal behavior and to develop effective
and humane means for preventing it. These goals have produced several schools of thought within the
discipline, each of which looks at different factors involved in deviant behavior and comes to different
conclusions about how best to approach the issues.
Criminological theories generally fall into the classical, biological, psychological, or sociological categories.
Classical theories explain criminal behavior as a conscious choice by individuals. Biological theories claim
that it's partly determined by certain inherited biological traits. Psychological theories explain criminal
behavior as the consequence of factors such as upbringing and childhood experiences. Sociological
theories say crime is mostly influenced by a variety of factors in a community, such as systemic
oppression and informal social controls.
The field of criminology can lead to improvements across the criminal justice system, including the
response to crime and treatment of both victims and criminals. It has also brought some advancements
in police tactics and practices, such as community-oriented policing.
Importance of criminology
Each discipline is unique and has especial value and importance. Some disciplines have value and
importance primarily in theoretical sense, whereas others are important for their practical value. The
science of criminology is important and valuable both in practical and theoretical senses. The science of
criminology is related to society and society has been likened to an organism. This fact makes plain and
evident the value and significance of the science of criminology. The scope of criminology is the various
social crimes and disturbances in their each and every aspect. As the science of medicine studies various
ills and their cures which afflict human body, in the same manner criminology studies ills and their cures
of society. The value and significance of the science of criminology is theoretical as well as practical. Its
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theoretical importance lies in the fact that it investigates and determines the cause of social
disintegration. The practical or applied aspect of this science is that besides determining the factors and
causes of social disintegration, it also studies the ways and means of preventing or eradicating these
evils, that is, remedial measures. This multifaceted value and significance of criminology is brought out
by following facts.
The Practical Importance of Criminology
Apart from having theoretical value and importance, criminology also has much practical use and
importance. In the words of Sutherland, “Criminology is concerned with the immediate application of
knowledge to the programs of social control of crime.” Following are some of the specific practical uses
of criminology.
(1) Elimination of Crimes-The elimination of crime is one of the specific aim of criminology. It helps
society in controlling and eliminating the crime both directly and indirectly. It is most obvious that if one
knows the cause of a malady, its cure becomes easy. It is a truism in medical practice that correct
diagnosis is more than half the cure. The same holds good in regard to the phenomenon of crime.
(2) Helpful in understanding the Psychology of the Criminal-Criminology is practical study. With
the help of its knowledge we can easily assess the attitudes and opinions of the criminals. The study of
criminology helps us to pin-point the factors responsible for the various crimes, that is, we see as to how
a particular crime is generated. There by we are able to correlate specific crime with specific set of
circumstances. Apart from learning about the psychology of crime, the knowledge of criminology helps
us to classify the criminals, that is, we are enabled to correlate personal factors like age, family and social
background, education and physical environs, physical and mental traits with different types of crime.
Thus for example, it may be revealed traits with different types of crime.
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Q. No. 3. What is the Islamic perspective on crime and punishment? Explain your answer
with the help of proper examples.
Crime and punishment
Every religion has specific teachings about and attitudes to wrongdoing. Islamic law sets out how Muslims
should behave in order to live the life that Allah intends them to live.
What does Islam teach about crime?
Muslims believe in the sanctity of life and therefore they do not think anybody has the right to
disrespect human life. Justice is an important teaching in Islam. The Qur'an teaches Muslims to:
Shari'ah law
Islamic law sets out how Muslims should behave in order to live the life that Allah intends them to live,
in harmony with others and their environment. If a person breaks a law it is seen as going against the
principles and rulings set by the Qur'an and Sunnah. Some countries have legal systems based
on Shari'ah Law, e.g Saudi Arabia and Iran.
Most Muslims believe that if a person commits a crime they should be punished by law, but they will also
have to answer to Allah on the Day of Judgment.
What does Islam say about how criminals should be treated?
Muslims believe in justice and therefore believe that criminals should be treated justly and be given the
chance to reform. One of the Five Pillars of Islam is zakah, which requires all Muslims to give away a
percentage of their wealth to help the poor, to ensure a level of justice and equality. This principle should
be applied to the treatment of criminals.
However, some punishments are given in the Qur'an and Hadith that some Muslims believe are
appropriate retaliation for those whose guilt is proven. Traditional Shari'ah Law, for example, suggests
that those who steal should have a hand cut off, although such a penalty would only be justified for the
most serious crimes and only after trial in a Shari'ah court.
How do Muslims respond to crime in society and those who commit crime?
Many Muslims are concerned with the welfare of prisoners. They may campaign for prison reform, visit
prisoners, or vote for a political party that reflects their views on justice and equality.
Some countries have legal systems based on Shari'ah Law, e.g Saudi Arabia
and Iran.
Crimes for which Hadd punishments are given
In the Quran the word 'Had ' is always used in the plural 'Hudud'. It means the limits laid down by God;
i.e. the provisions of the law whether commands or prohibitions. In Muslim criminal law Hadd means an
unalterable punishment prescribed by Divine law which is considered the right of God.
The crimes for which Hadd punishments apply are considered as crimes against religion because the
person who commits such crimes violates the rules of God and transgresses the bounds made by Him.
The Had is a right or claim of Allah ( haqq allah) and, therefore, no pardon or amicable settlement is
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possible.
These crimes against religion are:
1- 'zena ', fornication , i.e. between persons who are not in a state of legal matrimony. The Had for this
crime is stoning to death for the married, 100 lashes for unmarried and 50 for slaves. The Hadd
punishment for the unmarried who commits the crime of unlawful intercourse is mentioned in the Quran
while the punishment for the married, guilty of this crime is sanctioned by Sunnah. Hadd will not be
applicable to the insane and to the minors. A full investigation is also condition.
2- Kadhf is , slander in a special sense. If anyone accuses a respectable person of incontinence, without
being able to bring four persons to support him, he is liable by law a definite punishment (Hadd) of 80
lashes for Kadhf.
3- al-sariqa . theft. The Quran says: " As to the thief, male or female, cut off his or her hands: a
punishment by way of example, from ALLAH SWT, for their crime: And ALLAH SWT is exalted in Power.
The Cannon Law jurists are not unanimous as to the value of the property stolen, which could involve the
penalty of the cutting off the hand. The majority hold that petty thefts are exempt from this punishment.
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Q. No. 4. What is juvenile delinquency? Explain the nature, extent and causes of juvenile
Delinquency in Pakistan. Suggest remedial measures for reducing juvenile
delinquency in Pakistan.
MEANING OF JUVENILE DELINQUENCY: Delinquency is a kind of abnormality. When an individual
deviates from the course of normal social life, his behavior is called "delinquency".
When a juvenile, below an age specified under a statute exhibits behavior which may prove to be
dangerous to society and to him he may be called a 'Juvenile delinquent’. Each state has its own precise
definition of the age range covered by the word 'Juvenile'.
DEFINITION: Cyril Burt defines delinquency as occurring in a child "when his antisocial tendencies
appear so grave that he becomes or ought to become the subject of official action".
Frienlander says, "Delinquency is a juvenile misconduct that might be dealt with under the law."
WHO IS A JUVENILE DELINQUENT: Juvenile delinquents are those offenders including boys and girls
who are normally under 16 years of age. A juvenile delinquent is a young person incorrigible, or habitually
disobedient. Acts of delinquency may include:
• Running away from home without the permission of parents,
• Habitual truancy beyond the control of parents,
• Spending time idly beyond limits,
• Use of vulgar languages,
• Wandering about rail-road, streets, market places,
• Committing sexual offences,
• Shop-lifting and stealing etc.
FACTOR CONTRIBUTING TO JUVENILE DELINQUENCY
1. PHYSICAL FACTORS
• MALNUTRITON
• LACK OF SLEEP
• DEVELOPMENT ABBERATION
• SENSORY DEFECTS
• ENDOCRINE DISORDERS
• DRUG ADDICTION
• PHYSICAL EXUBERANC
2. MENTAL FACTORS
• MENTAL DEFECT
• PSYCHOSES
• MENTAL CONFLICTS
• PSYCHONEUROSES
• ABNORMALITIES OF INSTINCT AND EMOTION
• SEX HABIT AND EXPERIENCES
• OBESSIVE IMAGINARY AND IMAGINATION
3. HOME CONDITONS
• UNSANITARY CONDITIONS
• MATERIAL DEFICIENCIES
• POVERTY AND UNEMPOLYMENT
• BROKEN HOMES
• MENTAL AND PHYSICAL ABNORMALITIES OF PARENTS,OR SIBLING
• STIGMA OF ILLEGITIMACY
• "SUPERIOR" EDUCATION OF CHILDREN
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Administration of Juvenile Justice in Pakistan
Juvenile justice is the area of criminal law applicable to person who at the time of commission of an
offence have not attained the age of 18 years. The main goal of a juvenile justice system is rehabilitation
rather than punishment for juvenile criminal behavior: to avoid the stigmatization resulting from a
criminal conviction and the phenomenon of reoffending.
It is not possible to know exact number of prisoners, including children, in jails at any given time simply
because the number changes daily as some prisoners are released and new ones are brought in. However,
in 2011, there were 1,421 children in Pakistan's jails. Only 165 of these had been convicted and the
remaining 1256 children were still under trial.
NGOs are working to create awareness about the plight and needs of children in conflict with the law,
about Pakistan's juvenile justice system and about the international guideline and agreements concerning
juvenile justice.
Although there are a number of laws and constitutional guarantees for the protection of the rights of
children accused or convicted of crime, in reality they are seldom upheld. Juvenile prisoners, the majority
of whom are under trail, are among the worst off in Pakistan. Immediately following arrest and during
police remand, children suffer in police custody and are maltreated by the police authority.That are denied
access to legal aid, their relatives and are not kept separate from adult. While in prison, children are
subjected to degrading and inhuman treatment and punishment. Sadly, the juvenile inmates in prisons
faces problems such as extreme overcrowding, malnutrition, physical, mental, and sexual abuse and a
lack of medical care.
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Q. No. 5. Trace back the history and development of police organization in Pakistan.
According to the Oxford Handbook on Criminology, the police is an organization, whereas policing
is the function of preventing and detecting crime. In Pakistan, insofar as the organizational aspect is
concerned, each province has its own police organization, like the Punjab Police, Sindh Police, KP Police
and Baluchistan Police. The total number of police personnel in Pakistan is about half a million. Each
province has its own organizational law. The Police Order, 2002 is the organizational law of the Punjab
Police; the KP Police Act, 2017 is the organizational law of the KP Police; the Sindh Police works under
the Sindh (Repeal of the Police Act, 1861 and the Revival of the Police Order, 2002) (Amendment) Act,
2019, and the Baluchistan Police employs the Baluchistan Police Act, 2011. The powers of policing are
provided by the Code of Criminal Procedure 1898, and all police organizations derive their police powers
from it. The legal framework of policing primarily supports the detection model of policing by providing
the legal basis of investigation and subsequent processes; it provides very limited powers of preventing
crime to the police organizations.
The National Police Academy is the country s Premier Institution for education and training of middle
and senior level law enforcement officers, especially officers of the Police Service of Pakistan. It was
established in 1978, under a Presidential order, replacing the Police Academy in former East Pakistan.
National Police Academy is an autonomous body, administered by a Board of Governors headed by Minister
of Interior and senior police officers, civil servants and persons of eminence from the private sector.
The most recent suggestion for reforming the police is another such attempt to reinvent the wheel by
making the police subservient to district administration. Again, such an arrangement, instead of addressing
the root cause of the problem, would only be adding another layer of decision-making in matters calling
for police action. Also, there is nothing new about this latest suggestion, as this was the case in the Police
Act of 1861 until it was replaced by the Police Order in 2002. Sadly, suggestions for reforming the police
are always focused on assuming the power that the police force entails rather than truly reforming it.
When investigated, most cases of police high-handedness point to the junior ranks acting on their own,
without the consent or approval of their commanding officers. This happens when they feel the officer can
be easily manipulated with a concocted story — which is partly true, because the criterion for recruitment
of police officers via the CSS examination often ends up with the selection of square pegs for round holes.
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Q. No. 6. What is Criminal investigation? Explain the key principles of criminal
investigation.
Investigation is the backbone of every Criminal Justice system. Prosecution is responsible to prove guilt
of accused beyond reasonable doubt and accused is presumed to be innocent and cannot be convicted in
absence of trustworthy, confidence inspiring evidence. This high standard of proof can only be achieved
if evidence is properly collected, secured and documented at stage of investigation so that it can later on
be produced in court to prove charges against accused. Its importance can be estimated from the fact
that any evidence either not collected by investigating officer or not collected in accordance with the
prescribed law and rules can directly affect the result of litigation. Courts in any Criminal Justice system
are not involved in collecting evidence, its exclusive domain of investigating officer. Functions of court
are to draw inference from evidence and then conclude either an offence has been committed or to give
judgment that a particular person is not guilty.
WHAT IS INVESTIGATION:-
In legal terms investigation includes all the proceedings for the collection of evidence conducted by a
police officer or by any person who is authorized by a Magistrate in this behalf.
A good investigation is a rigorous process that consists of identification, collection, preservation and
presentation of evidence in court of Law.
Investigation means scrutiny, search or an inquiry into a matter to find out truth, to know about facts or
solve crime.
Investigation is,--
• A multidisciplinary approach.
• Involves systematic and logical thinking.
• Requires minutes and detailed inspection.
• Includes observation, examination and fact finding inquiry of witnesses.
• A rigorous process based on evidence.
GOALS OF INVESTIGATION:
1. To recognize evidence.
This is done by a detailed survey and research of crime scene. Everything that is present on a crime
scene may or may not have a probative value; an investigator must be able to recognize what evidence
can be helpful and what should be collected.
2. To Collect Evidence.
Most of the crime scene involves massive physical evidence that can be collected by the investigator be
later produced in court i-e, empty cartridges, DNA, finger prints and other trace evidence etc.
Evidence must be labeled properly describing FIR No. No, nature/type of evidence, position and place of
its collection, time date and name of witness in whose presence such evidence was collected.
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3. Preservation of Evidence.
It is as essential as collection of evidence because if integrity of evidence is compromised it cannot be
made basis for conviction of accused. To achieve this goal chain of custody must be maintained.
Chain of custody is described as chronological log of handling of evidence from place of seizure/collection
to its presentation in the court of law. It implies principle that there should be no unauthorized handling
of evidence at any stage.
4. Documentation of crime and other proceedings.
Recording of statement of eye witnesses must be done at crime scene and witness must be separated
before recording their statement eliminating possibility of fabrication.
Crime sketch that can be scaled or not scaled. But it must show north, important landmarks, presence of
accused and witnesses if any. Modern techniques involve crime scene photography at different ranges,
angle and even video-graph can be done.
First inspection note.
Preparation of report, injury statement in cases of murder.
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Q. No. 7. To what extent Interpol has been successful in reducing organized crime at
International level. Discuss
The International Criminal Police Organization (INTERPOL) is a global police agency whose main
aims are to: assist states in the global system work together to investigate international crimes and bring
offenders to prosecution; maintain global security; facilitate worldwide police cooperation and crime
control; provide support services, expertise, and training to law enforcements worldwide; and as well
focus on some areas of insecurity and transnational crime: terrorism, cybercrime, and organized crime.
The INTERPOL that was founded in 1923 in Vienna, Austria, is headquartered in Lyon, France with seven
(7) Regional Bureaus (RBs) globally and also having National Central Bureaus (NCBs) in all 194 member
states, making it the world largest police organization. The agency also facilitates cooperation among
national law enforcement institutions via the various criminal databases and communications networks.
The agency is as well, bedeviled with an avalanche of security challenges in executing some of its
fundamental responsibilities. Therefore, the study in its own objective, reviews the security challenges
and criticisms that serve as clogs in the wheel of INTERPOL as a global police agency in discharging its
responsibilities which include: bias, politically-motivated arrests/harassment of oppositions; involvement
in multi-billion deals with culprits; corruption; unfair trials amongst others.
Towards repositioning the agency to remain highly responsive and strategic in its fight against
international crimes and insecurity, the study recommends the need to incorporate and integrate effective
reforms in the system in order to carry out its primary assignments without fear or favor in the global
system. Recommendations of the study include: shunning corruption, dissociation from politics in the
discharge of its duties, fair trials, lack of bias, and respect for fundamental human rights among others.
For more than 100 years, police across the globe have been cooperating to prevent and fight crime.
While some of the basic crimes remain unchanged over the years (murder, robbery) other crimes have
followed technological, economic and sociological developments in our world (such as cybercrime and
people smuggling).
Policing has also advanced in line with developments in technology. Until the 1980s, when our records
were computerized, data was processed and analyzed manually.
In 1935, we launched a dedicated radio network for sharing police information while today’s secure
web-based system allows police to check our databases in real-time from the frontline.
Yet the very first initiatives to discuss extradition procedures, identification techniques and record
keeping are still at the heart of our role today. Locating fugitives remains a core activity, biometrics
have replaced paper fingerprints and our databases contain millions of global records of criminal data.
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The different crimes that Interpol handle with success rate.
• Counterfeit currency and documents. 65%
• Crimes against children.79%
• Cultural heritage crime. 44%
• Cybercrime.59%
• Drug Trafficking.77%
• Environmental crime.67%
• Financial crime.84%
• Firearms trafficking.55%
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Q. No. 8. Intelligence-led policing has become an effective model of policing in tackling
Organized crime. Discuss the background and key principles of intelligence-led
Policing.
Intelligence-Led Policing employs the latest technology to collect and analyze data,
providing police with valuable intelligence. This information can be used to deploy
people and resources for efficient, effective law enforcement in communities where
it is needed the most. At the same time, ILP involves a collaborative relationship
with community members and other law enforcement agencies, as they pool
observations and intelligence about criminal activity in the hope of stopping crimes
before they occur.
In the never-ending search for ways to combat crime more effectively, one thing is clear: the ideal solution
is to prevent crimes from occurring in the first place. Since the 1990s, many law enforcement agencies
around the world have been using some form of intelligence-led policing for crime prevention.
After nearly three decades, however, there is still much controversy and, surprisingly, not much empirical
evidence to either support or discredit this data-driven approach to crime prevention. Nevertheless,
agencies that have implemented intelligence-led policing have reported compelling results.
Defining Intelligence-Led Policing
When it comes to data-driven law enforcement, two approaches come to mind: intelligence-led policing
and predictive policing. While these approaches are not mutually exclusive, there is a difference. Predictive
policing uses computers to analyze the big data regarding crimes in a geographical area in an attempt to
anticipate where and when a crime will occur in the near future.1 While it does not go so far as to identify
who will commit the crime, it does pinpoint hot spots to help law enforcement anticipate the approximate
time of day and area of town where police might anticipate another crime. Armed with this information,
police can be placed more strategically to either thwart a crime in progress, or even better, prevent a
crime from taking place.
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Intelligence-led policing, on the other hand, attempts to identify potential victims and potential repeat
offenders, then works in partnership with the community to provide offenders with an opportunity to
change their behavior before being arrested for a more severe crime.2 According to the U.S. Department
of Justice, intelligence-led policing is “a collaborative law enforcement approach combining problem-
solving policing, information sharing, and police accountability, with enhanced intelligence operations.”3
It is designed to guide policing activities toward high-frequency offenders, locations, or crimes to impact
resource allocation decisions. An important component of intelligence-led policing is that it encourages—
and, arguably, depends on—collaboration among various agencies and the community, including not only
local police, but other local law enforcement, the FBI, homeland security agencies, and even probation
and parole officers.
In short, predictive policing is concerned with where and when crime may happen, while intelligence-led
policing, which often includes predictive policing, focuses on preventing victimization.
How Intelligence-Led Policing Works
Although today’s data-driven approaches incorporate sophisticated technology and analysis, predictive
policing has been in use for decades, albeit in a more rudimentary form. Police have long used information
about crimes in a particular area to identify patterns and anticipate where the next crime is likely to occur.
With the advancements in technology, agencies now use computers and data models designed to track
patterns, along with additional factors, such as time of day, weather, geography, and “aftershock” areas—
those in which a crime has been successful and are ripe for repeats of the same crime (e.g., gang
retaliation)—to build complex models that identify the potential for future crimes.4 Law enforcement can
then focus their resources on these hot spots.
Likewise, intelligence-led policing leverages data. The data on which it focuses, however, are already in
the law enforcement agency’s system, and the analysis centers around an individual, not a geographic
area. Intelligence-led policing gathers domestic incidents, arrests, criminal records, traffic stops, and gang
activity, and allows law enforcement to run analytics against those data. These analytics help law
enforcement identify offenders who are more likely to be repeat offenders of a particular crime or group
of crimes. Law enforcement can then track those individuals, observing when they move from one class
of offense to another. If an offender repeats an offense, police are alerted of that individual’s history,
giving them an opportunity to intervene in an effort to prevent more criminal activity.
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Q. No. 9. Discuss the laws and institutional arrangements for controlling money
laundering in Pakistan.
Money Laundering
Money laundering is the generic term used to describe the process by which criminals disguise the original
ownership and control of the proceeds of criminal conduct by making such proceeds appear to have
derived from a legitimate source.
The processes by which criminally derived property may be laundered are extensive. Though criminal
money may be successfully laundered without the assistance of the financial sector, the reality is that
hundreds of billions of dollars of criminally derived money is laundered through financial institutions,
annually.
Why is money laundering illegal?
The objective of the criminalization of money laundering is to take the profit out of crime. The rationale
for the creation of the offence is that it is wrong for individuals and organizations to assist criminals to
benefit from the proceeds of their criminal activity or to facilitate the commission of such crimes by
providing financial services to them.
How is money laundered?
The processes are extensive. Generally speaking, money is laundered whenever a person or business
deals in any way with another person’s benefit from crime. That can occur in a countless number of
diverse ways.
Traditionally money laundering has been described as a process which takes place in three distinct
stages.
1. Placement, the stage at which criminally derived funds is introduced in the financial system.
2. Layering, the substantive stage of the process in which the property is ‘washed’ and its
ownership and source is disguised.
3. Integration, the final stage at which the ‘laundered’ property is re-introduced into the
legitimate economy.
How is the offence of money laundering committed?
Money laundering offences have similar characteristics globally. There are two key elements to a money
laundering offence:
1. The necessary act of laundering itself i.e. the provision of financial services; and
2. A requisite degree of knowledge or suspicion (either subjective or objective) relating to the
source of the funds or the conduct of a client.
Controlling money laundering in Pakistan
Money laundering in Pakistan is a pervasive problem. Financial crimes related to narcotics trafficking,
terrorism, smuggling, tax evasion, and corruption remain a significant problem in Pakistan. The proceeds
of narcotics trafficking and funding for terrorist activities are often laundered by means of the alternative
remittance system called hawala. This system is also widely used by the Pakistani people for legitimate
purposes.
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The State Bank of Pakistan (SBP) has in the past issued detailed AML/CFT regulations, as well as
guidelines on a risk-based approach in 2012. The SBP is the regulator for AML controls for banking and
related services while the Securities and Exchange Commission (SECP) is the regulator for all other
entities. Other regulatory authorities include the National Accountability Bureau (NAB), the Anti-Narcotics
Force (ANF), the Federal Investigative Agency (FIA), and the Customs Authorities oversee Pakistan’s AML
law enforcement efforts.
The major laws in these areas include:
• The Anti-Terrorism Act of 2002, which defines the crimes of terrorist finance and money laundering
and establishes jurisdictions and punishments (amended in October 2004 to increase maximum
punishments).
• The National Accountability Ordinance of 1999, which requires financial institutions to report
suspicious transactions to the NAB and establishes accountability courts.
• The Control of Narcotic Substances Act of 1997, which also requires the reporting of suspicious
transactions to the ANF, contains provisions for the freezing and seizing of assets associated with
narcotics trafficking, and establishes special courts for offenses (including financing) involving illegal
narcotics.
All these laws include provisions to allow investigators to access financial records and conduct financial
investigations.
In 2007, Pakistan enacted the AML Ordinance, establishing regulations for AML and combating the
financing of terrorism and criminalizing money laundering. Under the Ordinance, the Financial Monitoring
Unit (FMU) is created. The FMU serves as Pakistan's FIU and is in charge of handling Suspicious
Transaction Reports (STRs). In 2010, the SBP passed the Anti-Money Laundering Act, replacing the 2007
AML Ordinance.
AML Training in Pakistan
In accordance with Pakistan’s 2007 AML Ordinance, a General Committee must be in place to review all
training programs related to Anti-Money Laundering (AML). An ongoing comprehensive training program
is essential for the continued growth and success of financial institutions in Pakistan.
The Economy of Pakistan
Pakistan, an impoverished and underdeveloped country, has suffered from decades of internal political
disputes, low levels of foreign investment, and a costly, ongoing confrontation with neighboring India.
However, since 2001, International Monetary Fund (IMF) approved reforms, most notably, privatization
of the banking sector, bolstered by generous foreign assistance and renewed access to global markets,
have generated macroeconomic recovery. Poverty levels have decreased by 10% since 2001. Inflation
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remains the top concern among the public, jumping from 7.7% in 2007 to more than 11% during the
first few months of 2008, primarily because of rising world commodity prices.
The Anti-Money Laundering Act, 2010 (the Act) is the primary law governing the prevention
of money laundering and combatting the financing of terrorism. The Act as federal legislation
is applicable all over Pakistan
