Pakistan is required to abide by the "International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation" set forth by the Financial Action Task Force (FATF Recommendations) and is also subject to FATF mutual evaluations on the adoption and implementation of FATF Recommendations.

Pakistan passed the Anti-Money Laundering Act of 2010 (the AML Act) and the Anti-Terrorism Act of 1997 in this regard. The accounting profession is subject to requirements under the AML Act, which calls for AML/CFT regulatory and oversight procedures. The Parliament further amended the AML Act, according to which, the Institute of Cost and Management Accountants of Pakistan (ICMAP) is designated as an AML / CFT Regulatory Authority of its members.

ICMA as an AML / CFT Regulatory Authority has issued “Anti-Money Laundering and Combating Financing of Terrorism Regulations for Cost and Management Accountants Reporting Firms” (the Regulations) under section 6A(2) of the AML Act, 2010.