The government has proposed amendment to the Anti Money Laundering (AML) Act 2010 to make the money laundering a cognizable and non-bailable offense to curb the practice of Hawala/Hundi and other forms of illegal foreign exchange transactions. This was stated by the Finance Division AML section during a meeting of the Senate Standing Committee chaired by Senator Farooq H Naek. The committee was informed that rationale of the proposed amendment was to allow prompt investigation of offense of money laundering.
The meeting was also stated that the proposed amendment will address the risks of removal of concealment of any money or other property involved in money laundering due to time consumed in obtaining court order.
Additionally, the amendment was agreed to strengthen the AML/CFT regime in Pakistan and to given powers to the investigation or prosecuting agency.
While giving backdrop, Finance Division informed the committee that Prime Minister in a meeting held on September 2018 had desired to curb the practice of Hawala/Hundi and other forms of illegal foreign exchange transactions.
In this regard Finance Division was given direction to take immediate steps to prevent illegal practice through amendment in the AML Act 2010.
On October 218, a meeting was convened by the Finance Division of all the relevant stakeholders to discuss and finalize the proposed amendment and progress report was also sent to the Prime Minister.
On December 5, 2018, cabinet committee on disposal of legislative cases (CCLC) authorized the submission of the summary to the cabinet for ratification. On December 20, 2018 the cabinet considered the summary for ratification of the decision taken by the CCLC and ratified the summary with the modification that special assistant to Prime Minister on accountability should ensure that draft amendment relating to AML Act, 2010 should be suitably amended by the concerned forum and referred back to the law and justice division for final vetting.
Accordingly, special assistant to Prime Minister on accountability had proposed amendments in AML Act, 2010.
The committee was further informed that the draft amendments in the AML proposed by the special assistant to prime minister on accountability duly vetted by law and justice division was also reviewed and approved by the CCLC on February 2019 and also been ratified by the federal cabinet on February 28, 2019 Subsequently the proposed amendment Bill of AML was introduced in the Parliament and placed before the National Assembly on April 22, 2019.
The meeting was informed that the law was also pending in the Finance Standing Committee of the National Assembly as members of the committee have objected to the proposed amendment for making the money laundering a cognizable offense. Members of the senate Finance Committee also voiced their reservation on the amendment and decided to defer its approval.
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