Role of Digital Public Infrastructure (DPI) in Strengthening AML/KYC for Developing Economies
DOI:
https://doi.org/10.64060/IJLLA.V2I1.132Keywords:
Digital Public Infrastructure, AML/KYC, Developing Economies, PakistanAbstract
Digital Public Infrastructure (DPI) has emerged as a transformative framework for enhancing financial governance and strengthening regulatory compliance in developing economies. This paper examines the role of DPI in reinforcing Anti-Money Laundering (AML) and Know Your Customer (KYC) mechanisms, with particular focus on Pakistan. This study analyzes how Pakistan’s evolving digital ecosystem, particularly the national digital identity system managed by the National Database and Registration Authority (NADRA) and digital payment initiatives led by the State Bank of Pakistan, contributes to strengthening AML/KYC compliance. The research employs a qualitative case study approach, reviewing policy documents, regulatory frameworks, and existing literature to evaluate the effectiveness of DPI-based systems in improving compliance mechanisms. The findings suggest that DPI significantly improves the efficiency, accuracy, and scalability of AML/KYC processes. However, challenges remain, including data privacy concerns, regulatory capacity gaps, and the need for stronger institutional coordination. The paper concludes that strategic investment in DPI, accompanied by robust legal safeguards and international cooperation, can substantially strengthen financial integrity frameworks in developing economies.
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Copyright (c) 2026 Muhammad Nawaz Shahid (Author)
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