The National Institute of Banking and Finance (NIBAF), a key training arm supporting the financial sector in Pakistan, has successfully conducted a one-day customized training program dedicated to the critical topic of trade-based money laundering. Organized for participants from Bank Alfalah Limited (BAFL), the session aimed to strengthen professional capacity in identifying, assessing, and mitigating money laundering risks embedded within cross-border trade operations. The training took place on November 29, 2025, at the BAFL Learning Center in Karachi and brought together 34 banking professionals working across various functions within the institution.
Trade-based money laundering has become an increasingly complex challenge for financial institutions worldwide, particularly in emerging markets where international trade continues to expand. Recognizing the growing risk landscape, NIBAF designed this program to provide a deeper understanding of trade-related schemes, regulatory obligations, and operational vulnerabilities that institutions must address to remain compliant. With financial crime evolving alongside technological and geopolitical changes, the training was developed to help BAFL teams stay aligned with both national and global compliance standards.
The session was led by Mr. Saleem Sheikh, Joint Director of the Exchange Policy Department at the State Bank of Pakistan. Known for his extensive experience in foreign exchange regulations and anti–money laundering controls, Mr. Sheikh guided participants through practical examples, case studies, and regulatory frameworks that shape Pakistan’s efforts to counter financial crime. His insights helped attendees analyze red flags, understand trade documentation risks, and interpret policy guidelines issued by the State Bank of Pakistan, enabling them to better manage vulnerabilities in day-to-day banking operations.
Throughout the training, participants engaged in interactive discussions designed to simulate real-world decision-making scenarios. These activities encouraged BAFL professionals to explore how financial criminals manipulate trade transactions through methods such as over-invoicing, under-invoicing, phantom shipments, and misrepresentation of goods. By breaking down these schemes, the program strengthened participants’ ability to identify suspicious activity and implement appropriate internal controls.
The training also highlighted the importance of cross-departmental coordination when addressing trade-based money laundering. Participants explored the need for collaboration between compliance teams, trade operations units, front-line staff, and technology departments to ensure that monitoring systems remain effective. With the banking sector moving toward advanced digital infrastructure, the session emphasized the role of data analytics and transaction monitoring technologies in detecting anomalies and protecting institutions from regulatory breaches.
NIBAF reiterated its continued commitment to enhancing the capacity of Pakistan’s financial workforce through specialized training programs that address emerging risks. By equipping BAFL professionals with updated knowledge and tools, the institute aims to support a more resilient and compliant banking environment.
The successful completion of this program adds to BAFL’s ongoing efforts to strengthen its compliance culture and align with global standards. As regulatory expectations continue to evolve, such initiatives remain essential for ensuring that Pakistan’s financial sector can effectively counter illicit financial flows and protect the integrity of the country’s trade and banking ecosystem.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.