Senate Standing Committee on Finance has constituted a core committee to look into the proposed amendments in the Anti-Money Laundering Act 2010 and would subsequently give viewpoint after holding an internal meeting of the committee.
The senate Standing Committee on Finance chaired by Senator Nasreen Jalil met here on Thursday to take up the reading of AML clauses. The meeting decided that it would invite an expert Senator who is also a legal expert to get his opinion on the proposed amendments.
During the meeting, Financial Monitoring Unit (FMU) has forfeited more than one billion under anti-money laundering since 2010 when the law has been enforced.
Mansoor Ali of FMU of State Bank of Pakistan (SBP) informed the Senate Standing Committee on Finance here on Thursday that FMU has also referred Modarba scandal to the National Accountability Bureau (NAB) that recovered Rs 700 million.
The FMU also informed the committee that there were many suspicious transaction reports (STRs) on which progress remained slow.
Ministry of Finance Legal Consultant informed the committee that there have been some issues in implementation of the AML during the last four years. Finance Secretary also acknowledged the implementation issues.
Committee also expressed reservations that the proposed law may become a draconian law. Senator Sughra Imam said that how many cases of property attachments have been detected under the anti-money laundering regime. She further stated that the law seems to be pushed through under some kind of pressure.
The proposed amendment in the act regarding punishment for money laundering states for the words "the money laundering", the words "money laundering or property of corresponding value" shall be substituted. As per international standards, the law should be able to cover proceeds generated from predicate offence or the money laundering offence or property to the value of the proceeds or instrumentalities of crime. This change tends to address this deficiency in the law.
About the powers of National Executive Committee (NEC) to combat money laundering, the proposed law states adjustments have been proposed in the membership of national NEC and General Committee (GC) so as to give representation to all the stakeholders. Secondly, NEC is the apex policy making body, therefore, administrative functions presently assigned to NEC are proposed to be transferred to GC. Thirdly, this change will empower NEC to form subcommittees and, wherever required, assign specific function to General Council. After the word "shall", occurring for the first time, the words "hold its meetings not less than twice a year and shall be responsible to" shall be inserted.
Through another proposed amendment, the change will bring the proceeds of tax crimes within the scope of this law. One of the key changes made by FATF in the year 2012 is the inclusion of Tax Crimes (related to direct and indirect taxes) in the designated list of predicate crimes for money laundering. Going forward, any country that does not include tax crimes as predicate crimes to money laundering will be considered as non-compliant by FATF. By bringing tax related offences under the purview of this law, like many other countries in the world, Pakistani authorities will be able to detect serious Tax-Crimes and laundering of such proceeds.
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