In a significant step towards combating trade-based money laundering (TBML) and advancing Pakistan’s financial technology landscape, Pakistan Single Window (PSW) has entered into a strategic collaboration with Karachi-based RegTech firm, AKS-iQ. The partnership is designed to fortify regulatory compliance in cross-border trade while enabling local innovation through AI-powered tools tailored for the banking sector.
Under this agreement, PSW will grant AKS-iQ access to its national trade data, which the latter will use to develop and enhance advanced analytics solutions for commercial banks. These solutions will specifically help banks conduct price reasonability assessments on goods in international trade contracts. The initiative supports compliance with the State Bank of Pakistan’s regulatory framework targeting TBML and terrorism financing risks.
This is PSW’s second formal engagement with the fintech sector, marking a broader strategic push to foster transparency, integrity, and innovation in the country’s trade finance environment. By enabling regulated fintech players to leverage national trade infrastructure, PSW aims to strengthen institutional safeguards while promoting technological advancement.
Speaking about the partnership, PSW CEO Mr. Syed Aftab Haider stated, “This collaboration reflects our open innovation model. By allowing new players in the fintech ecosystem to tap into PSW’s data infrastructure, we are encouraging competition and innovation, while also reinforcing the financial integrity of Pakistan’s trade system.” He further emphasized that the move aligns with international standards, including FATF (Financial Action Task Force) and anti-money laundering (AML) protocols.
The core of this initiative lies in the enhancement of AKS-iQ’s flagship product, Trade iQ—an AI-powered compliance tool already in use by several domestic banks. With PSW’s data integration, the platform is expected to significantly improve in terms of precision and speed when conducting trade price validations. Trade iQ utilizes machine learning algorithms to detect anomalies, ensure compliance, and reduce operational risks often associated with trade financing.
Director of Financial Services at AKS-iQ, Mr. Imtiaz Ahmad Sheikh, welcomed the development, calling it a strategic milestone for the firm and the broader fintech ecosystem in Pakistan. “Our collaboration with PSW allows us to better serve the regulatory and business needs of our clients. This strengthens our mission to contribute to financial integrity through locally-developed AI-based solutions,” he remarked.
AKS-iQ, a homegrown RegTech innovator, is known for its specialization in AI-driven tools for regulatory compliance, particularly in TBML detection. The partnership highlights the rising role of indigenous fintech firms in solving complex regulatory problems using cutting-edge technologies.
Beyond its immediate goals, the partnership is also a testament to the potential of public-private collaboration in transforming Pakistan’s trade and financial infrastructure. It represents a model for how government entities and startups can jointly create impactful, scalable solutions that not only meet regulatory benchmarks but also foster innovation and digital transformation.
As Pakistan continues its journey toward a more digitized and secure trade ecosystem, initiatives like this serve as a blueprint for harnessing data, AI, and local expertise to achieve both compliance and competitiveness on a global scale.