NIBAF Pakistan has successfully concluded the 9th iteration of its three-day training program on International Trade and Trade-Based Money Laundering, held from January 26 to 28, 2026, at its Lahore campus. The program brought together professionals from various commercial banks, offering a focused platform to examine emerging risks and regulatory expectations linked to international trade finance and trade-based financial crime.
The training was designed to address the increasing complexity of international trade transactions and the growing risks associated with trade-based money laundering. With global trade channels frequently exploited for illicit financial flows, the program aimed to enhance participants’ technical knowledge and strengthen institutional capabilities to identify, assess, and mitigate TBML-related risks in line with evolving regulatory frameworks.
The sessions were led by Mr. M. Akram Zaki and Mr. Umar Farooq, Deputy Director at the State Bank of Pakistan, combining industry experience with regulatory insight. The trainers provided a comprehensive overview of international trade operations, including documentation, payment mechanisms, and common trade finance instruments, while linking these operational elements to money laundering vulnerabilities that can arise across the trade cycle.
Around 21 participants from different commercial banks attended the program, allowing for interactive discussions and practical learning. The relatively focused group size enabled in-depth engagement on real-world scenarios, red flags, and case studies related to TBML. Participants explored how trade transactions can be misused through practices such as over-invoicing, under-invoicing, multiple invoicing, false description of goods, and misuse of letters of credit.
A significant component of the training focused on regulatory expectations and supervisory perspectives. Participants were briefed on the role of financial institutions in detecting suspicious trade activities, maintaining effective controls, and aligning internal policies with national and international anti-money laundering and counter-terrorism financing standards. Emphasis was placed on the importance of risk-based approaches, transaction monitoring, and coordination between trade operations and compliance functions.
The program also addressed practical mitigation techniques, highlighting the need for enhanced due diligence, stronger customer profiling, and effective use of data and documentation analysis in trade finance. Discussions covered the challenges banks face in balancing trade facilitation with compliance requirements, particularly in an environment of increasing regulatory scrutiny and cross-border enforcement actions.
Participants engaged in scenario-based discussions to better understand how TBML risks manifest in day-to-day banking operations. These sessions encouraged knowledge sharing among banks, allowing attendees to compare approaches, challenges, and best practices in managing trade-related financial crime risks. The interactive format helped bridge the gap between regulatory guidance and operational implementation.
The training reflected NIBAF Pakistan’s continued focus on capacity building within the banking sector, particularly in areas critical to financial integrity and regulatory compliance. As trade finance remains a key component of Pakistan’s banking system, strengthening institutional understanding of TBML risks is essential to safeguarding the sector and maintaining confidence among regulators and international counterparts.
By the conclusion of the program, participants gained a clearer understanding of how international trade activities intersect with money laundering risks and the responsibilities of banks in preventing misuse of the financial system. The training reinforced the importance of continuous learning, cross-functional coordination, and adherence to regulatory expectations in managing complex trade finance operations.
The successful completion of the 9th iteration of this program underscores NIBAF Pakistan’s role in supporting the banking industry through targeted, knowledge-driven initiatives. As regulatory frameworks continue to evolve, such specialized trainings remain critical in ensuring that financial institutions are equipped to respond effectively to emerging risks in international trade and financial crime compliance.
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