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Virtual currencies and money laundering: existing and prospects for jurisdictions that comprehensively prohibited virtual currencies like Pakistan

Author

Listed:
  • Nasir Sultan
  • Norazida Mohamed
  • Mervyn Martin
  • Hafizah Mohd Latif

Abstract

Purpose - This study aims to examine the Financial Action Task Force’s recommendations on virtual currencies (VCs) and how Pakistan has responded to them. Design/methodology/approach - Qualitative document and jurisprudence analysis techniques were used to achieve the study’s goal. Findings - According to this study, VCs are modern FinTech that no jurisdiction can ignore. However, Pakistan has not adopted regulations to govern VCs but comprehensively prohibits their use. It is primarily due to the apathy of various regimes and regulators. Furthermore, the geographical location, undocumented economy and rampant corruption could facilitate the abuse of VCs for money laundering. Originality/value - This study has provided a significant overview for developing regulations for VCs in Pakistan and other developing jurisdictions with the same characteristics.

Suggested Citation

  • Nasir Sultan & Norazida Mohamed & Mervyn Martin & Hafizah Mohd Latif, 2023. "Virtual currencies and money laundering: existing and prospects for jurisdictions that comprehensively prohibited virtual currencies like Pakistan," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 27(2), pages 395-412, May.
    • Handle: RePEc:eme:jmlcpp:jmlc-02-2023-0024
    DOI: 10.1108/JMLC-02-2023-0024
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    References listed on IDEAS

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    1. Nasir Sultan & Norazida Mohamed, 2022. "The money laundering typologies and the applicability of placement-layering-integration model in undocumented South Asian economies: a case of Pakistan," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 27(4), pages 741-762, October.
    2. Nasir Sultan & Norazida Mohamed, 2022. "Challenges for financial institutes in implementing robust customer due diligence in Pakistan," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 26(5), pages 926-946, September.
    3. Nasir Sultan & Norazida Mohamed, 2022. "Challenges faced by financial institutes before onboarding politically exposed persons in undocumented Eastern economies: a case study of Pakistan," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 26(3), pages 488-508, July.
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    Keywords

    Money laundering; Virtual currencies;

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