FIA Sets Up Virtual Currency Investigation Cell to Tackle Terror Financing

ISLAMABAD: The Federal Investigation Agency (FIA) has established a Virtual Currency Investigation Cell to strengthen Pakistan’s efforts against terrorism financing, money laundering, cybercrime and other financial crimes involving cryptocurrencies and blockchain technology.

According to an official notification approved by the Director General FIA, the newly established specialised unit will investigate the criminal use of virtual currencies and digital assets while enhancing the country’s capability to detect and prosecute emerging financial crimes.

National Command and Control Centre to Coordinate Investigations

As part of the initiative, the FIA will establish a National Command and Control Centre under the Virtual Currency Investigation Cell to coordinate intelligence, investigations and digital forensic operations.

The cell will work in collaboration with:

• National Accountability Bureau (NAB).
• Federal Board of Revenue (FBR).
• National Counter Terrorism Authority (NACTA).
• Provincial police.
• Other relevant federal and provincial institutions.

The objective is to centralise investigations into money laundering, terrorist financing and cyber-enabled financial offences.

Focus on Crypto Monitoring and Financial Crime Detection

Officials said the unit will:

• Monitor suspicious cryptocurrency and blockchain transactions.
• Conduct forensic examinations of digital wallets and cold wallets.
• Investigate fraud involving virtual assets.
• Adopt advanced investigative technologies and internationally recognised practices to identify and dismantle criminal financial networks.

Part of Broader Regulatory Framework

The government has also introduced a broader regulatory framework under which the Pakistan Virtual Assets Regulatory Authority (PVARA) will oversee the country’s virtual asset market.

Under the framework:

• Only licensed crypto service providers will be allowed access to the banking system.
• Strict action will be taken against illegal and undocumented cryptocurrency trading.

The FIA said the initiative has been launched in line with Pakistan’s National Action Plan (NAP) and the recommendations of the Financial Action Task Force (FATF) to strengthen the country’s anti-money laundering and counter-terror financing framework.