Dynamics of Money Laundering and Terrorist Financing : A Challenge to Pakistan

This article throws light on organised crime which is chameleonic in nature and it represents and adjusts according to promulgated laws. This has prospered and overlapped criminal activities of organised criminal groups. In the same way, money laundering is the predicate offence and it is naturally linked to other organised crimes. This change occurred after end of the cold war, when earlier terrorism was state sponsored. Aftermath, latest trend of overlapping and cooperation of terrorist activities among the organised criminal groups has increased. Article also touches impact of 9/11 which was a culmination of lethal combination of money laundering and terrorist financing. This same nexus is currently being experienced by Pakistan. Here various terrorist groups are involved with direct and indirect support of funds through abuse of financial channels for money laundering. Article also discusses some limitations faced during the research work on this selected subject.. Like other research works, it is also subjected to the limitations with its inherited strengths and weaknesses. In the previous research works in Pakistan, the criminological aspect is missing on the subject. Thus it was very difficult to analyze complete methodologies involved in organised crimes in Pakistan from qualitative perspective. Such limitations have been major compelling factors which led the researcher to opt qualitative methods in the pioneered research work.Author also tried to review various criminological dynamics of money laundering. By reviewing international literature and data on Pakistan, the researcher finds no specific money laundering activities are addressed on the basis of criminological aspects. This may involve how the organised groups commit criminal activities of money laundering in Pakistan and involvement of transnational methodologies. Pakistan is facing the problem of money laundering. Since it has porous borders with politically disturbed and terrorist-ridden Afghanistan; and provides ideal passage for trafficking narco-drugs to and from Iran and China in its North & West. After happening of 9/11, the number of terrorist activities has seriously increased. Thus to carry out research work on the subject was need of hour in Pakistan. Aspects of slackness in money laundering and terrorist financing regime of Pakistan are also analysed. This helped the researcher to find out root causes and existing weaknesses at the regime’s end in countering money laundering and terrorist financing. Objective is to critically dissect dissipation of organised criminal activities and money laundering in Pakistan along with transnational stake holders’ involvement with counter measures. Vulnerability of weak institutions sways the criminal networks to launder their illicit proceeds. It requires analysing various counter measures taken up by the state regime in countering organised crime and curbing the nexus of money laundering and terrorist financing in Pakistan. Various methodologies adopted by criminal networks are reviewed in the article. Criminal networks exploit pervasiveness of technological advancement more efficiently than the government. Government should recognise that sovereignty is daily compromised at the hands of stateless organised criminal networks. These are involved in laundering of money; financing of terrorism and other linked organised crimes. Active presence of Al-Qaida, other non-state actors, porous borders with Afghanistan, cash based and undocumented economy are serious challenges and need immediate check over these. Counter measures taken by Pakistan are also analysed. It cannot be denied that Pakistan is combating a qualitative new phenomenon with obsolete tools, weak enforced laws, corrupt bureaucratic hierarchy and fragile strategies. Money laundering and terrorist financing have serious socio-politico and economic consequences. Strategy of Pakistan has regional and international impact, since Pakistan is strategically located in the Asia region. All countries in the region require beefing up efforts against money laundering and terrorist financing at local, regional and international level. Pakistan has showed its international commitment to the global stakeholders for adopting multi-prong strategies. But there is a long way to go in countering money laundering and terrorist financing. Counter terrorist operations, namely ‘Zarb-e-Azb’ (means sharp and cutting strike) in North Waziristan along the Pakistan-Afghanistan border in 2014 & Radd-ul-Fasaad (means elimination of strife) across the country 2017 were carried out by Pakistan army as a part of serious efforts at state level to curb local and cross border terrorism. Finally recommendations and conclusion are also offered by the researcher, believing could be valuable contributing factor in curbing laundering of money and financing of terrorism in the country