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LAHORE: Prior conviction of an accused for the predicate offence is not a prerequisite for initiation of proceedings under the Anti-Money Laundering (AML) Act, said sources.

It may be noted that the Directorate of Intelligence and Investigation (I&I) is the “investigating and prosecuting agency” for the purposes of investigating the offence of money laundering. It has the necessary expertise, being part of the Federal Board of Revenue (FBR), to investigate matters underlying the offence of money laundering including the fact that the tax sought to be evaded is Rs10million or more.

The offence of money laundering is intrinsically linked to and dependent upon the predicate offence and; therefore, any investigation must necessarily be conducted also in respect of the latter by the investigating officer under the law.

Anti-money laundering law: Notices being issued to BoDs of companies

It is generally understood that the proceedings under the Anti-Money Laundering (AML) Act cannot be initiated without first determining the guilt of the accused under the predicate offence, they added.

The proponents of the view also believe that there are certain pre-requisites in relation to the predicate offences and till such time a determination is made in respect thereof the proceedings under the Anti-Money Laundering provisions cannot move forward and FIRS cannot be registered.

They further contend that these determinations cannot be made by the investigating officer.

Copyright Business Recorder, 2023

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