ISLAMABAD: The Finance Ministry has said that there is no evidence of direct investment in offshore companies from Pakistan which has been claimed by Panama Papers.
Moreover, the Finance Ministry is also said that the investments mentioned in the Panama Papers were made by the persons in their individual capacity and same had not been routed through the companies account.
The Finance Ministry has come to this conclusion in the light of an investigative report compiled by its subsidiary department, the Securities and Exchange Commission of Pakistan (SECP).
The findings of the report available with Customs Today states that the SECP has initiated investigation into the offshore companies and came to the conclusion that certain companies had entered into transactions with companies registered in foreign jurisdictions, which was not prohibited in terms of Companies Ordinance, 1984. “Moreover, the SECP has initiated correspondence with such companies,” the report states.
“However, the instances where noncompliance would be observed, necessary legal proceedings shall be initiated in accordance with relevant provision of the law” the SECP report states.
The report further relates that in order to handle such matters on immediate basis, special provisions pertaining to maintenance of record of foreign investment in shape of Companies’ Global Register of Beneficial Ownership, has been introduced in Draft Companies Bill, 2016.
“Further enhanced disclosures have been proposed in the financial statements in the proposed Companies Bill, 2016 in respect of investments in foreign companies. These new concepts are being introduced to meet the international standards and requirements. Public suggestions regarding the bill have also been invited for consideration” the report said.
Under these concepts the information would be reported by the company to the registrar along with the annual return of the company; however for the first time, such information would be reported through a special return on a prescribed form within a stipulated timeframe.
Furthermore, for prevention of fraud and money laundering, every officer of the company shall be required to take necessary measures to prevent the commission of fraud and money laundering in the respective company. Any failure on the part of such officer shall be an offence.
