Pakistani authorities have reportedly detected suspicious transactions reports (STRs) in connection with Afghan Transit Trade business by ensuring effective implementation of cross border movement of currency as part of measures taken to counter financing for terrorism. These STRs are being forwarded to Federal Board of Revenue (FBR) (DG-I&I) and Federal Investigation Agency (FIA) for a further inquiry, stated officials during a meeting of sub-committee constituted to put in place measures to counter financing for terrorists and terrorist organisations.
A meeting of the sub-committee was presided over by Finance Minister Ishaq Dar on Wednesday to review the implementation status of the decisions taken during the last meeting with representatives of various ministries/divisions providing an update on the latest status on Wednesday.
The meeting was informed that with respect to implementation of the regime for cross-border movement of currencies, FBR, State Bank of Pakistan (SBP), FIA and Anti-Narcotics Forces (ANF) were given the assignment to initiate an action against drug transits, illegal proceeds and misuse of Afghan Transit Trade business. These agencies have reported eight STRs in connection with Afghan transit trade business and smuggling, which are being disseminated to FBR (DG-I&I) and FIA for a further inquiry.
The meeting was also informed that the number of currency transactions reports (CTRS) has increased significantly after the threshold of CTRs for reporting entities was lowered to Rs 2 million from 2.5 million. The CTR reporting records increased by around 26 percent as compared to preceding year: the numbers of CTRs has increased from 272,586 during January-October 2014 to 343,309 during January-October 2015.
The meeting decided that the threshold of reporting of cash-based transactions should be reduced gradually. The meeting was also informed that the Financial Monitoring Unit of the Finance Division referred 49 reports relating to Hawala to FIA for an inquiry.
The SBP is also referring cases of illegal money remitters to FIA. On the basis of these referrals, FIA has registered a number of cases and conducted effective investigations, the meeting was further informed. Dar stated that a consolidated report on actions taken by Pakistan to counter money laundering and terrorist financing would be shared with the international community at the FATF forum, likely to meet in France in February 2016.
Pakistan being a member of the Asia/Pacific group on Money Laundering/ counter-terrorism financing (APG/CFT) is required to follow Financial Action Task Force (FATF) standards to avert adverse any international impact. The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system and its recommendations are followed in 80 countries of the world.
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