ISLAMABAD: With the aim to curb money laundering and terror financing, the government has decided to amend existing FIA Act, 1974, Foreign Exchange Regulation Act (Fera), 1947, Customs Act, 1969 and AML Act, 2010.
A high-level meeting, chaired by the Finance Minister, Asad Umar, reviewed and finalised proposed amendments to/insertions in relevant laws for strengthening punitive regime to prevent hundi, hawala and other illegal foreign exchange transactions.
The meeting after thorough discussion endorsed the amendments to the relevant laws. Recommendations in this regard would be submitted to the prime minister shortly.
The finance minister on the occasion strongly reiterated government’s resolve for an effective campaign against money laundering and transfer of money through non-banking channels. He said the amendments would strengthen the institutional framework to augment the capabilities of various state agencies in dealing with the issues of illegal money transactions.
The meeting was attended by Attorney General of Pakistan, Secretary Finance, Secretary Ministry of Law and Justice, Secretary Commerce, Acting Secretary Foreign Affairs, Governor State Bank of Pakistan, Special Secretary Interior, Special Secretary Finance and senior officials of FBR, FMU, FIA and NAB.
Aimed at enhancing the role of Federal Board of Revenue (FBR) and Federal Investigation Agency (FIA) in checking hundi, hawala and other ways of illegal transfer of money as well as tax evasions, the proposed changes to the law, which were finalised at the meeting, would soon be submitted to the prime minister.
The finance minister reiterated government’s resolve for an effective campaign against money laundering and transfer of money through non-banking channels, hundi and hawala. The meeting was informed that the anti-money laundering act of 2010 had multiple stakeholders including the State Bank of Pakistan (SBP), the FBR and the Securities and Exchange Commission of Pakistan (SECP).
An amendment to anti-money laundering act was proposed to include the role of the FBR in checking tax evasions. The meeting was apprised that the FBR has a key role in containing illegal transfer of money particularly currency smuggling. It was decided that the role of FBR’s customs department, too, will be enhanced in containing smuggling of currency mainly dollars from the country.
As the customs department and the FIA are responsible to check the human carriers smuggling currency out of the country and the amendments have proposed to recommend stringent punishments for the smugglers.
It was suggested that the FIA’s role be enhanced to contain hundi and hawala (shifting of wealth out of country or vice versa without any physical movement of currency).
“This mode is very common and it even has the blessing of certain religious segments who claim that the use of a banking channel was not Islamic,” said an FBR official.
