Pakistan Banks’ Association (PBA) has recently taken a step that is something very new for the Islamic Republic of Pakistan.
The particular association has recently signed up a contract that would ensure that the country puts more power and resources into the implementation of the KYC policies.
Money Laundering Situation in Pakistan
Pakistan is among the countries considered to have the most corrupt politicians in the entire world. There are several cases against almost every popular and major politician in the country.
Some of the major examples include the former Prime Minister of Pakistan Nawaz Sharif, his sons, and his daughter. The current Prime Minister Shehbaz Sharif and his sons, and many prominent politicians who are part of the same party PML-N.
Then comes another family of politicians that includes the former President of Pakistan Asif Zardari and his son Bilawal Bhutto Zardari.
There are many more politicians and major families in Pakistan that are involved in criminal and money laundering activities that have not been caught at all.
The country is currently on the verge of going bankrupt and a major contributor to this demise is the money laundering activities in the country.
These activities have been taking place throughout the country and there is no proper procedure or way to put a stop to these activities.
PBA to Enforce Strict KYC Restrictions
This is when the PBA has tried to take a step to put a stop to money laundering activities. It has attempted to do this with the implementation of strict and firm know-your-customer (KYC) policies.
However, the PBA wants to do it in the most advanced and effective manner and that is to adopt blockchain technology.
The PBA has signed an agreement with Avanza Group that would work on the development of a platform that would track the implementation of the KYC policies.
However, the platform will be developed on the blockchain network, making it highly effective and decentralized. This way, no central entity would have access to the data so they can manipulate it to their favor.
The Avanza Group
The particular group is known for providing advanced banking applications and different kinds of solutions to companies all over the country.
The group is formed of several companies that specialize in cybersecurity, software development, IT, AI, and many more departments. The company has also started growing more adaptable toward blockchain technology in recent years.
It has gained enough experience and has grown enough skills in the particular sector that it wants to come up with better ideas for Pakistan.
It is going to use its expertise and incorporate them into blockchain technology. Most importantly, the company is known for having one of the most reliable customer experience management solutions.
The Signing Ceremony
The ceremony of signing the agreement took place in Karachi. It was signed at the office of the PBA, which was visited by the executives from The Avanza Group.
Muhammad Aurangzeb, the Chairman of the PBA as well as Waqas Mirza, the CEO of The Avanza Group were the chiefs of the event.
A Major Step by the Central Bank
There has been a tremendous amount of uncertainty in the country’s politics, which has become worse due to the money laundering cases.
The corrupt and foul politicians have been acquiring exemptions from the investigative departments due to a lack of evidence.
Therefore, the State Bank of Pakistan has come up with an effective way of putting a stop to money laundering activities.
The SBP is supporting the PBA in its efforts of signing an agreement and launching a blockchain-based KYC implementation platform.
This way, the country will be able to keep a close eye on any kinds of activities involving cryptocurrencies and other financial mediums.
The country is also facing increased terrorist attacks, so the same infrastructure would help them implement counter-terrorist financing (CTF) policies as well.