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Govt decides to introduce amendments in anti-money laundering laws

Govt decides to introduce amendments in anti-money laundering laws

ISLAMABAD: The government has decided to introduce amendments in anti-money laundering laws and will present draft of amendments before the Parliament soon.

Sources said that the present government has started extensive consultations to prepare amendments in laws i.e. Anti-Money Laundering Act 2010, FERA 1947, PERA 1992 and FIA Act 1974 to curb the practice of Hundi and Hawala which play a major part in laundering of money. A range of predicate offenses which are included in the schedule of AML Act, 2010 has been expended by adding offenses from Pakistan Penal Code, Sales Tax Act, 1990, Federal Excise Act, 2005, the Securities Act, 2015, Income Tax Ordinance, 2001, Anti-Terrorism Act, 1997, National Accountability Ordinance, 1999, The Arms Act, 1878, the Foreigners Act, 1946, Prevention of Corruption Act, 1947, Foreign Exchange Regulation Act, 1947, the Copyright Ordinance, 1962, The Pakistan Arms Ordinance, The Customs Act, 1969, The Emigration Ordinance, 1979, The Control of Narcotic Substances Act, 1997, The Pakistan Environmental Protection Act 1997, The Registered Designs Ordinance, 2000, The Trade Marks Ordinance, 2001, The Prevention & Control of Human Trafficking Ordinance, 2002.

It is also pertinent to mention here Anti Money Laundering (AML) Ordinance was promulgated in 2007 (AML) which later on transformed into AML Act, 2010 in line with recommendations of Financial Action Task Force (FATF).An independent administrative financial intelligence unit –Financial Monitoring Unit (FMU) was created in pursuance of AML Act. The function of FMU is receipt, analysis and dissemination of suspicious and currency transaction reports to designated entities.

Under the AML Act, 2010, investigation & prosecution powers have been assigned to NAB, ANF, FIA, Directorate General (Intelligence and Investigation-Customs) and Directorate General (Intelligence and Investigation-Inland Revenue) FBR and have been designated as Law Enforcement Agencies (LEAs).

To further align the AML Act, 2010 with international standards, the law was amended in December, 2015 to include Tax Offences. The role and functions of the National Executive Committee (NEC) and the General Committee (GC) constituted under the AML Act 2010 was further strengthened by giving representation to all stakeholders of AML/CFT regime.