Pakistan has taken a further step toward bringing virtual asset activities within its financial crime prevention framework after the National Executive Committee on Anti-Money Laundering and Countering the Financing of Terrorism (AML-CFT) approved the inclusion of the Pakistan Virtual Assets Regulatory Authority (PVARA) in Schedule IV of the Anti-Money Laundering Act (AMLA). The decision was made during the committee’s 19th meeting on October 27, 2026, chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at the Finance Division. PVARA is responsible for regulating virtual asset services in Pakistan, and its inclusion in the AMLA framework is intended to improve coordination between virtual asset oversight and the country’s wider efforts to prevent money laundering and terrorist financing. The committee also approved the proposed inclusion of Section 28 of the Pakistan Maritime Zones Act, 2023, in Schedule I of the AMLA, as part of broader regulatory changes considered at the meeting.
The decision is relevant to Pakistan’s developing digital asset sector because virtual assets can introduce financial monitoring challenges when transactions move across platforms, accounts and jurisdictions. Bringing PVARA into the AMLA framework is expected to support the alignment of virtual asset regulation with the country’s existing anti-money laundering and counter-terror financing arrangements. The committee’s approval, however, should not be interpreted as an automatic ban on cryptocurrency transactions or as evidence that every crypto-related transaction can now be blocked without further legal and procedural steps. The approved changes concern the inclusion of the regulator and a specified provision of maritime law within the AMLA schedules. Their practical effect will depend on the applicable legal provisions, implementation measures and coordination among relevant authorities. For businesses operating in the virtual asset sector, the development underlines the importance of monitoring regulatory requirements as Pakistan builds out its formal framework for digital asset services.
The NEC meeting also reviewed progress on decisions taken during its previous meeting and assessed the wider implementation of Pakistan’s AML-CFT framework. Discussions covered the performance of the Financial Monitoring Unit (FMU), institutional capacity and the use of artificial intelligence and machine learning in financial monitoring operations. The committee approved proposed revisions to the thresholds for Currency Transaction Reports, which are considered alongside Suspicious Transaction Reports in the analysis of potentially unusual financial activity. These measures form part of a broader effort to improve the identification and assessment of financial risks. Finance Minister Aurangzeb called for a clear implementation roadmap to improve the FMU’s analytical and operational capacity, supported by defined timelines. He also stressed the need for timely follow-up, stronger coordination among institutions and consistent monitoring so that decisions taken by the committee translate into practical action. The meeting brought together senior officials, including the State Bank of Pakistan governor, the SECP chairman, the finance secretary and representatives of other relevant government bodies.
For virtual asset businesses, financial institutions and technology companies considering digital asset services, the decision signals that anti-money laundering and counter-terror financing compliance will remain an important part of Pakistan’s evolving regulatory environment. PVARA’s published framework identifies requirements such as customer due diligence, transaction monitoring, record keeping and suspicious activity reporting for licensed virtual asset service providers. The authority’s regulatory role is therefore connected not only with licensing and market oversight but also with preventing the misuse of virtual assets for illicit financial activity. Businesses should assess the requirements applicable to their specific activities rather than assume that the NEC’s approval alone sets out every operational obligation. Further official guidance and implementation details will help clarify how the inclusion in the AMLA schedules will be applied. The latest decision is part of Pakistan’s wider effort to adapt its financial monitoring framework to emerging technologies while improving cooperation between regulators and enforcement institutions.
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