National Anti-Money Laundering and Counter Financing of Terrorism Authority Act, 2023

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THE NATIONAL ANTI-MONEY LAUNDERING AND COUNTER 
FINANCING OF TERRORISM AUTHORITY ACT, 2023 
 
 
 
 
 
 
CONTENTS 
1.  Short title, extent and commencement 
2.  Definitions 
3.  Establishment of the Authority 
4. Composition of the Authority 
5.  Procedures of Authority 
6.  Powers and Functions of the Authority 
7.  Chairman of the Authority 
8.  Functions and Powers of  the  Chairman 
9.  Director General of the Authority 
10.  Assistance and call for information 
11.    Appointment of officers, staff etc., by the Authority 
12.    Fund 
13.  Budget for the Authority 
14.  Maintenance of accounts and internal control 
15.  Audit 
16.  Annual Report 
17.  Indemnity 
18.  Power of the Federal Government to issue directives 
 
 

 
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19.  Power to make rules and regulations 
20.  Relationship with other laws 
21.  Employees deemed to be Public Servants 
22.  Repeals, Savings and Validity of Actions, etc. 
23.   Power to interpret 
 
 
  
 
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THE NATIONAL ANTI-MONEY LAUNDERING AND COUNTER 
FINANCING OF TERRORISM AUTHORITY ACT, 2023 
 
ACT NO. LIII OF 2023 
 
[7th August, 2023] 
 
AN 
 
ACT 
 
to establish National Anti-Mone y Launder ing and Counter Financ ing of Terr orism 
Authority in Pakistan 
 
 WHEREAS, the menace of money laundering and terrorism is becoming an existential threat 
to the state and needs to be responded to and addressed comprehensively; 
 
 AND WHEREA S, Pak istan be ing responsible a nd ac tive member of the international 
community is continuously coo perating with and  adopting internationally recognized measures, 
particularly proposed by the concerned international organizations whom Pakistan is in cooperation 
with, for anti-money laundering, countering financing of terrorism and targeted financial sanctions by 
way of promulgating requisite legal and regulatory framework in the country; 
 
 AND WHEREAS while various federal and provincial agencies, departments, ministries and 
institutions of Pakistan are functioning in connection with an ti-money laundering, countering of 
financing of terrorism and targeted financial sanctions under various laws in force, there is need of a 
focal institution to un ify state response by p lanning, c ombining, co ordinating and  implementing 
Government’s policy through an exhaustive strategic planning and necessary ancillary mechanism and 
to coordinate and collaborate at international level; 
 
 It is hereby enacted as follows:— 
 
 1. Short title, extent and commencement.—(1) This Act shall be called the National Anti-
Money Laundering and Counter Financing of Terrorism Authority Act, 2023. 
 
 (2) It shall extend to the whole of Pakistan.  
  
 (3) It shall come into force at once.   
 2. Definitions.—In this Act, unless there is anything repugnant in the subject or context,— 
 
(a)     “Authority” means the National Anti-Money Laundering and Counter 
Financing of Terrorism Authority of Pakistan established under Section 3; 
 
(b)     “Competent   authorities”   means   the   term   as   defined   in   the Anti-Money 
Laundering Act, 20 10; the National Counter Terrorism Authority, Provincial 
Home Departments, Federal Board of Revenue, Ministry of Interior, Ministry 
of Foreign Affairs and such o ther authorities, departments, organizations or  
agencies as may be notified by the Federal Government from time to time; 
 
(c)     “Director General” means the Director General of the Authority appointed 
pursuant to Section 9; 
 
(d)     “Division concerned” means the Cabinet Division;  
 
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(e)     “Rules” means rules made under the Act;
 
(f)     “Regulations” means regulations made under this Act; and 
 
(g)    “Prescribed” means prescribed by rules or regulations. 
 
 3. Establishment of the Authority.—(1) The National Anti-Money Laundering and Counter 
Financing of Terrorism Authority Pakistan is hereby established for carrying out the purposes of this 
Act. 
  
 (2) The Authority shall be a body corporate having perpetual succession and a common seal 
with powers, subject to the provision of this Act, to acquire and ho ld p roperty, movable and 
immovable, and to sue and be sued by its name. The Authority shall have administrative and financial 
powers to carry out its functions. 
 
 (3) The headquarters of the Authority shall be at Islamabad and it may set up offices at such 
other places in Pakistan as may be deemed appropriate. 
 
 4. Composition of the Authority.—(1) The Authority shall be comprised of the following: 
 
(a)     Chairman — To appointed by the Prime Minister 
 
(b)     Secretary, Finance Division of the Ministry of Finance— Member 
 
(c)     Secretary, Foreign Affairs Division of the Ministry of  Foreign Affairs— 
Member 
 
(d)     Secretary, Interior Division of the Ministry of Interior — Member 
 
(e)     Governor, State Bank of Pakistan — Member 
 
(f)     Chairman, Securities and  Exchange  Commission  of  Pakistan— 
 Member 
 
(g)     Chairman, National Accountability Bureau — Member 
 
(h)     Director General, Federal Investigation Agency — Member 
 
(i)     Director General, Anti Narcotics Force — Member 
 
(j)     Chairman, Federal Board of Revenue — Member 
 
(k)     Director General, Financial Monitoring Unit — Member 
 
(l)     National Coordinator, National Counter Terrorism  Authority— 
 Member
 
(m)  The Director General of the Authority — Member/Secretary 
 
(n)     Chief Secretary for his nominee not below BPS-21 of each province including 
Azad Jammu and Kashmir and Gilgit Baitistan— Member 
 
(o)    Any other member as recommended by the Prime Minister. 
 
 
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 (2)  The Authority may, from time to time, invite such persons, as it may deem appropriate, 
for the purposes of this Act. 
 
 5. Procedures of Authority.—(1) The Authority may meet any time on requisition of the 
Chairman or at requisition of at least fifty percent of the members. Provided however, the Authority 
shall meet at least twice a year. 
 
 (2) The quorum of the Authority’s meeting shall be fifty percent of the total membership. 
 
 (3) A meeting of the Authority shall be presided over by the Chairman. In the absence of the 
Chairman, a member nominated by the Chairman shall preside over the meeting. A meeting of the 
Authority may also be convened virtually. 
 
 (4) The Director General shall, at least five days prior to the meeting, circulate to all the 
members working papers of each agenda item to be discussed in the meeting alongwith proposed 
actions on which decisions of the Authority is required. All decisions in the meeting shall be made 
with majority of the present members. The Chairman or the member presiding the meeting, as the 
case may be, shall not have second vote. 
 
 (5) The Director  General  shall  have  the minutes of each meeting p repared and seek 
endorsement of all members of the Authority through circulation. 
 
 (6) The Director General shall maintain record of each meeting of the Authority, which shall 
be available to any member of the Authority as and when so requested. 
 
 6. Powers and Functions of the Authority.—(1) The Authority shall act as overarching body 
for implementation by the relevant competent authorities under the relevant laws with respect to anti-
money laundering, countering of financing of terrorism and targeted financial sanctions; 
 
 (2)    Without prejudice and generality of the foregoing, the Authority shall have following 
powers and functions:—
 
(a)     to act as focal point for the Financial Action Task Force and related international 
organizations, bodies and to carry out liaison with the competent authorities 
and other national, international o rganizations, bodies and or  entities for 
facilitating cooperation in areas relating to anti-money laundering, countering 
of financing of terrorism and targeted financial sanctions; 
 
(b)     to coordinate and oversee the implementation of a national strategy to fight 
money laundering, coun tering financing of terrorism and targeted financial 
sanctions and  approve national action plan(s) for implementation of  such 
national strategy(s); 
 
(c)     to   review,   from   time   to   time,   national   policies,   laws   and regulations 
relating to anti-money laundering, countering financing of  terrorism and 
targeted financial sanctions and  propose a mendments to the Fed eral 
Government; 
 
(d)     to  coordinate  at  policy  level  and  provide  policy  advice  to  the federal/ 
provincial/local competent authorities and the Pro vincial Governments on 
 
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implementation of anti-money laundering, countering financing of terrorism and 
targeted financial sanctions regime to maintain uniformity at national level; 
 
(e)     to formulate rules and regulations, and conditions of the employees of  the 
Authority and grant additional allowances, rewards or any other incentives in 
consultation with the Finance Division after the app roval of the F ederal 
Government; 
 
(f)    to enter into any agreement, memorandum of understanding or protocols with 
counterpart national or international organizations in relation to cooperation in 
anti-money laundering and countering financing of terrorism and targeted 
financial s anctions; provided ho wever,  that  this  function  shall  not  be  
construed  to  override powers of any competent authority to enter into such 
arrangements under their respective laws; and 
 
(g)     to discuss and deliberate on any other issue of national importance relating to 
money laundering, financing of terrorism and targeted financial sanctions. 
 
 (3)  Except  stipulated  in  paragraph  (g)  of  sub-Section  (2) of  this Section, the Authority 
may delegate any of its powers and functions to the Chairman of the  Authority  with such terms  
and conditions  as it  may  deem appropriate.
 
 7. Chairman of the Authority.—(1) There shall be a Chairman of the Authority to be 
appointed by the Prime Minister for term of three years on su ch terms and conditions as  may be 
prescribed. The Chairman shall be eligible fur reappointment for another term. 
 
 (2) The Chairman shall not be removed from the office prior to the expiry of the term unless 
he is guilty of g ross misconduct; or is incapable of properly performing the duties of his office by 
reason of physical or mental incapacity: 
 
 Provided that no proceedings under this sub-section sh all be initiated un less a show cause 
notice, including an opportunity of being heard, is given to such person. 
 
 (3) The Chairman may tender his resignation under his own hand to the Prime Minister. 
 
 (4) In the absence of the Chairman, the Director General shall act as acting Chairman and 
perform all functions and powers of the Chairman under this Act. 
 
 8. Functions  and  P owers  of  the  Chairman.—(1)  The  Chairman shall exercise general 
control and supervision over the affairs of the Authority; shall be the Principal Accounting Officer of 
the Authority and;  shall ensure that the provisions of the Act, the rules, regulations, policies and 
directions of the Authority are properly executed. 
 
 (2)  Without prejudice to the generality of the foregoing, the Chairman shall have the following 
powers, namely:— 
 
(a)     to ensure implementation by th relevant competent authorities of the   laws   
with   respect   to   anti-money   laundering,   countering financing of terrorism 
and targeted financial sanctions; 
 
 
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(b)   to develop na tional action plans with respect to anti-money laundering, 
countering financing of terrorism and targeted financial s anctions in 
coordination and consultation with the relevant authorities; analyse   the   data   
received   from   the   competent authorities and report to the Authority about 
implementation of these plans, on periodical basis; 
 
(c)     to propose guidelines with the approval of the authority to the competent 
authorities in line with the international best practices and requirements of 
Financial Action Task Force for developing and implementing the risk based 
supervisory plans or framework whatsoever called; ann ual training and 
outreach plans and monitoring of implementation of the aforesaid guidelines or 
directions by the competent authorities; and make recommendations to the Federal 
Government for effective implementation of anti-money laundering, countering 
of financing of terrorism and targeted financial sanctions action plans; 
 
(d)     to authorize expenditure provided for in the budget in accordance with the 
rules and regulations; 
 
(e)     to re-appropriate funds within the approved budget; 
 
(f)     to execute deeds and documents on behalf of the Authority; 
 
(g)     to appoint experts from public or private sector for deliberations in areas related 
to the mandate and functions of the Authority; 
 
(h)    to issue guidelines and resolve issues of overlapping of functions inter se 
competent authorities; and 
 
(i)     to execute the policies and plans approved by the Authority and instructions 
issued by the Federal Government. 
 
 (3) The Chairman may delegate any of its functions and powers to the Director General with 
such terms and conditions as it may deem appropriate. 
 
 9. Director General of the Authority.—(1) There shall be a Director General of the Authority 
appointed by the Prime Minister upon recommendation of the Authority. The Director General shall 
be appointed for a term of three years.  A Director General  shall  be  eligible  for  reappointment  
provided  that his age shall  not  exceed  sixty-five years at the time of appointment or re-appointment, 
as the case may be and, in case he achieves the age of sixty-five during the term, he shall be deemed 
retired. 
 
 (2)  A Director General shall have following qualifications to become eligible for appointment 
of Director General: 
 
(a)     he shall be a professional of known integrity, competence and shall be a retired 
civil servant (BS-21 or above) or serving civil servant (BS-21 or equivalent) or 
an officer of the Authority having the at least five (5) years’ experience; 
 
(b)     he shall have minimum twenty-five (25) years post qualification experience   
in   the   administration,   law   enforcement,   finance, taxation  and legal matters 
including a minimum ten (10)  years experience in senior management position 
in the relevant field; and
 
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(c)     he should have understanding in anti-money laundering, countering financing 
of terrorism and targeted financial sanctions laws, rules, regulations and 
procedures. 
 
 (3) The Director General shall assist the Chairman of the Authority in the performance of his 
duties and shall have the following powers and functions, namely:— 
 
(a)     to coordinate and propose necessary instructions, guidelines to the competent 
authorities, the Fede ral and Provincial ministries and depa rtments and local 
government authorities on implementation of an ti-money laundering, 
countering financing of terrorism and targeted financial sanctions regime; 
national action plans; analyse the data received, identify gaps and report to the 
Authority about implementation of these plans, on periodical basis; 
 
(b)   to set up committees, sub-committees, working groups for the purposes of this 
Act and compliance with Pakistan’s commitments and or ob ligations with 
respect to the requirements of conc erned international organizations whom 
Pakistan is in cooperation with; 
 
(c)    issue necessary directions to the competent authorities for the purposes of this 
Act; 
 
(d)   seek reports from the competent authorities responsible for compliance of anti-
Money laundering, countering of financing of terrorism  and  targeted  financial  
sanctions  regimes  as  it  may require; 
 
(e)     to seek input and coordinate formulation of risk assessments with periodical  
reviews  for  making  adequate  and  timely  efforts  to counter money laundering, 
terrorism and targeted financial sanctions; 
 
(f)     to establish central data base of all relevant data fields related to compliance of 
anti-money laundering, countering financing of terrorism and targeted financial 
sanctions through development of online data management system; 
 
(g)   to carry out research on topics relevant to money laundering, financing  of  
terrorism and targeted financial sanctions and  to prepare and circulate 
documents, if deemed required; 
 
(h)  to have financial and administrative powers for effective administration of the 
Authority, as approved by the Chairman;
 
(i)     issue notices of meetings of the Authority and to maintain proper record of the 
minutes and proceedings thereof; and 
 
(j)     to  perform  such  other  functions  as  may  be  delegated  by  the Chairman; 
provided that in the absence of the Director General, the senior most officer 
present in the Authority shall act as the Director General. 
 
(4)    The Director General may by special order delegate his powers and functions to any other 
senior officer of the Authority: 
 
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 Provided  that  the  Director  General  may  delegate  his  powers  and functions under this 
provision sparingly and not as a rule. 
 
 10. Assistance and call for information.—(1) The Federal Government’s agencies, 
Provincial Governments’ departments shall assist the Authority in providing information and data as 
may be required for the purposes of this Act. 
 
 (2)  For the purposes of Sub-section (1), the Director General or any officer authorized by 
him may call for information and data from all Federal Ministries, Provincial Departments and any 
competent authority at such intervals and time, as and when required. 
 
 (3) All information and data provided to the Authority under this Act shall be kept confidential 
and shall not be disclosed to any national or international organization other than for the purposes of 
this Act. 
  
 (4)  Upon contravention of any of the provisions of this Act or violation or   non-implementation   
of any law pertaining to an ti-money laundering, coun tering financing of terrorism and targeted 
financial sanctions by any  official of  any competent authority, the Authority shall recommend 
appropriate disciplinary action under relevant law against such official. 
 
 11. Appointment of officers, staff etc., by the Authority.—(1) The Authority with the 
approval of the Federal Government may from time to time appoint, either through direct recruitment 
or through deputation su ch c adre or  ex-cadre officials, experts or consultants as it may consider 
necessary for the performance of functions under this Act. 
 
 (2) The Authority with the approval of the Federal Government shall prescribe s ervice 
regulations for the appointment, promotion and transfer of officers, staff, experts and consultants, their 
terms and  conditions of service including additional financial incentives such as  special salaries, 
allowances, pension or gratuity, constitution and management of pension and gratuity and shall be 
competent to take disciplinary action against them.
 
 (3)    The Authority may delegate powers contained in this section to the Chairman and may 
specify terms and conditions for exercising such powers. 
 
 12. Fund.—(1)  There  shall  be  established  a  fund  to  be  known  as National Anti-Money 
Laundering and Countering Terrorism Authority Research and Development Fund. 
 
 (2)    The Fund shall consist of,— 
 
(a)     funds or budget amount received from the Federal Government; 
 
(b)     grants made by the international bodies, organizations and entities, in 
accordance with procedures laid down by the Federal Government; and 
 
(c)     such other sums as may be received by the Authority. 
 
 (3) The Fund shall be administered by the Director General in such manner as may be 
prescribed. 
 
 
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 (4) The Authority may receive international assistance in the field of anti-money laundering 
and countering terrorism in the manner as may be prescribed. 
 
 13. Budget for the Authority.—The Director General shall, in respect of each financial year 
in accordance with the financial procedures approved by the Authority, prepare the annual budget 
estimates of the Authority and submit the same to the Federal Government after the approval of the 
Authority. 
 
 14.  Maintenance of accounts and internal control.—The Authority shall maintain complete 
and accurate boo ks of acc ounts in con nection with the d ischarge of its responsibilities as may be 
prescribed by the Auditor-General of Pakistan. 
 
 15. Audit.—(1) The accounts of the Authority shall be audited every year by the Auditor-
General of Pakistan in such manner as may be prescribed. 
 
 (2) The Authority shall appoint its own financial advisor to regulate the financial matters and 
for internal audit. 
 
 16. Annual Report.—The Authority shall compile and submit an annual-report on its activities 
and accounts to the Federal Government.
 
 17. Indemnity.—No prosecution, suit or other legal proceedings shall lie against the Authority 
or its officers and consultants for anything done in good faith for carrying out the purposes of this Act 
or rules and regulations made thereunder. 
 
 18. Power of the Federal Government to issue directives.—The Federal Government may, 
as and when it considers necessary, issue directives to the Authority on matters of policy and such 
directives shall be binding on the Authority and if a question arises whether any matter is a matter of 
policy or not, the decision of the Federal Government thereon shall be final. 
 
 19. Power to make ru les and  regulations.—(1) The Federal Government may, on the 
recommendation of the Authority, make rules for carrying out the purposes of this Act. 
 
 (2) The Authority may make regulations for the following purposes, namely:— 
(a) effective and smooth functioning of the Authority;  
(b)     internal working of the Authority; 
(c)     terms  and  conditions  of  the  employees  and  grant  of  additional allowances, 
rewards or any other incentives, 
 
 20. Relationship with other laws.—(1) Save as provided  in  the proviso to sub-section (2) 
of this section and section 24, the provisions of this Act shall be in addition to and not in derogation 
with any other law for the time being enforce. 
 
 (2) Nothing con tained in this Act  shall override, limit or extinguish a ny functions and or  
powers of  any authority, agency, department  or competent authority in connection with anti-money 
laundering, countering of financing of terrorism and targeted financial sanctions, whether such 
functions and or powers have been conferred upon any authority, agency, department or competent 
 
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authority under any law or  through exe cutive or administrative order of the Fede ral or Provincial 
Government, as the case may be: 
 
 Provided that section 5 of the Anti-Money Laundering Act, 2010 sh all continue to be 
implemented to the extent the same is not inconsistent or overlapping with the provisions of this Act. 
 
 21. Employees deemed to be Public Servants.—The employees of the Authority shall be 
deemed to be Public Servants within the meaning of Section 21 of the Pakistan Penal Code (Act 
XLV 1860).
 
 22. Repeals, Savings and Validity of Actions, etc.—(1) On the commencement of this Act— 
 
(a)     the Prime Minister’s Office Order No 3021/M/SPM/2019 dated 2nd August, 
2019 constituting the National Financial Action Task Force C oordination 
Committee shall stand rescinded; and 
 
(b)     Notification No. 4-1/2019-Min-I dated 30-12-2019 of the Federal Government 
setting up the National Financial Action Task Force Cell shall stand rescinded. 
 
 (2) All rights, powers, authorities and privileges, of whatever kind of the National Financial 
Action Task Force Coordination Committee and the National Financial Action Task  Force Cell 
subsisting immediately before their dissolution shall stand transferred to and ve st in the Authority 
established under this Act. 
 
 (3) Anything done, actions taken, orders passed, instruments made, notifications issued, 
agreements made, proceedings initiated, processes or co mmunication issued, powers conferred, 
assumed or exercised, by the National Financial Action Task Force Coordination Committee and or 
the National Financial Action Task Force Cell, as the case may be, or their officers on or after the 
dates of the respective notifications referred to in paragraph (a) and (b) of sub-Section (1) of this 
Section and before commencement of this Act, shall be deemed to have been validly done, made, 
issued, taken, initiated, conferred, assumed,  and  exercised  and  provisions  of  the  Act  shall  have,  
and  shall  be deemed always to have had, effect accordingly. 
 
 (4)  At the time of commencement of this Act, all officers and staff deputed to the National 
Financial Action Task Force Cell shall continue working under  the Authority until the Federal 
Government shall make appropriate order with respect to retention, posting or repartriation of such 
officers and staff. 
 
 (5) Notwithstanding anything contrary contained in any other law for the  time  being  in  
force,  upon  commencement  of  this  Act,  reference  to  the Director General FATF Cell appearing 
in any existing law shall be deemed to be the Director General of the Authority under this Act. 
 
 23.  Power to interpret.—(1) The Federal Government may issue clarification with regards 
to any ambiguity arising out of interpretation of this Act in relation to other relevant laws for the 
time being in force.