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A parliamentary panel would take up and may approve today (Monday) critically important proposed bill to further amend the Anti-Money Laundering (AML) Act 2010 which would help the country to comply with the recommendations of financial action task force (FATF).

The law was sent to the Senate Standing Committee on Finance Committee by the Senate on Wednesday and the government wanted its approval from the committee very next day on Thursday, however, the absence of the chairman of the committee Farooq H Naek postponed the committee meeting.

The statement of the object and reasons of the proposed law states that in order to bring further improvements in the AML Act 2010 and in line with the suggestions of AML/CFT stakeholders particularly law enforcement agencies responsible for the enforcement of the AML Act 2010, amendments in the law are being proposed. The proposed amendment reflects government firm resolve to strengthen its AML regime.

These amendments are aimed at streamlining the existing AML law in line with the international standards and suggest enhancing the punishment of offense of money laundering to make it more dissuasive and deterrent.

The amendments suggest making the offence punishable under the AML Act 2010 as cognizable offence. The amendments would also allow Financial Monitoring Unit to seek Egmont Group membership (Group of Financial Intelligence Unit), which is requirement under the FATF recommendation.

Sources said that the government is required to submit a report to the FATF by mid of this month with regard to approval of AML amendment law from the parliament. As the chairman of the committee was not in the country, the meeting the finance committee and consideration of law was postponed till Monday.

An official on condition of anonymity stated that the approval of the legislation was delayed primarily because senate session was not convened by the government and now given a limited time the committee may create difficulties for the government. The official added that the committee is required to submit report to the House within ten days on the proposed law to further amend the AML Act 2010, but this time line is extendable on the requires of the committee. As per rule allows members of the committee present in a meeting to elect one of them as presiding officer -in case the chairman is not available -to conduct the sitting of the committee for the day but the Naek himself wanted to chair the committee meeting, the official of the senate added.

Copyright Business Recorder, 2020

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