Money laundering remains a significant threat to global financial systems, national security, and economic stability. With the rapid development of financial technology (fintech), existing anti-money laundering (AML) frameworks face growing limitations. China’s 2025 Anti-Money Laundering Law introduces substantial regulatory innovations by formally integrating fintech platforms and virtual asset service providers (VASPs) into the AML compliance regime, strengthening supervisory powers, and enhancing transparency through mechanisms such as beneficial ownership identification and technology-driven monitoring. This paper examines how these reforms enhance oversight and enforcement within China’s fintech ecosystem and evaluates their relevance for Pakistan’s evolving digital financial sector. Using a doctrinal legal method and analysis of FATF standards and comparative regulatory practices, the study finds that China’s approach particularly the inclusion of fintech entities within AML obligations, strengthened inter-agency coordination, and the adoption of RegTech tools significantly improves compliance monitoring and regulatory effectiveness. The paper argues that elements of these reforms, especially clearer legal recognition of fintech actors, improved institutional coordination, and technology-assisted supervision, offer practical policy guidance for Pakistan. However, successful implementation requires context-specific adaptation and strengthened institutional capacity within Pakistan’s regulatory framework.