Illegal foreign exchange transactions: government set to introduce amendments

The government is set to introduce amendments in the FIA Act 1974, Foreign Exchange Regulation Act (FERA) 1947, Customs Act 1969 and AML Act 2010 to strengthen punitive regime against Hundi, Hawala and other illegal foreign exchange transactions.
Sources in the Finance Ministry said that amendment will be based on the recommendations finalized by a meeting presided over by Finance Minister Asad Umar on Monday.
The sources said the government is likely to introduce an ordinance to amend the FIA Act 1974, Foreign Exchange Regulation Act (FERA) 1947, Customs Act 1969 and AML Act 2010 to strengthen punitive regime against Hundi, Hawala and other illegal foreign exchange transactions.
They added that the government is likely to bring amendments in the relevant laws through an ordinance within few days as the recommendation finalized by the committee for strengthening the punitive regime against Hundi, Hawala and other illegal foreign exchange transactions will now be submitted to the Prime Minister.
Sources on condition of anonymity said that the FIA suggested to the meeting that their personnel should be allowed access to the premises of customs counters for checking the passengers, but its proposal was objected by the FBR, arguing if FIA wants to check a passenger, it can do so when the passenger is outside their area at the airports.
The amendments cover existing FIA Act 1974, Foreign Exchange Regulation Act (FERA) 1947, Customs Act 1969 and AML Act 2010. The meeting after detailed discussion endorsed the amendments in the relevant laws. The recommendation will now be submitted to Prime Minister Imran Khan for approval.
The finance minister on the occasion strongly reiterated the 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 law, secretary commerce, acting secretary foreign affairs, governor State Bank of Pakistan, special secretary interior, special secretary finance and senior officials of Federal Board of Revenue, Financial Monitoring Unit, Federal Investigation Agency and National Accountability Bureau.