A meeting of the Finance Committee of the National Assembly has passed proposed Anti-Money Laundering (AML) (Amendment) Bill and Foreign Exchange Regulations (Amendment) Bill to curb money laundering, practice of Hawala/Hundi and other forms of illegal foreign exchange transactions in the country. MNA Asad Umar, who chaired the meeting, urged the members to pass laws as a critical meeting of Financial Action Task Force (FATF) for the country is approaching in September to decide whether Pakistan would be improved or worsened on the list. The meeting was told that most of the changes in the proposed amendment bills have been made to comply with the FATF requirements.
The meeting was opposed to giving arrest powers to the Federal Investigation Agency (FIA) and recommended that to make arrest of a person, reason to believe of guilty of an offence punishable under money laundering should be subject to issuance of arrest warrant by the court.
As the meeting began proceedings on Foreign Exchange Regulations (Amendment) Bill, the committee was informed that amendments have been proposed because these are creating problems for FATF. However, Dr Ayisha Ghaus Pasha and other members were of the view that unnecessary regulations on movement of money for businesses led to Hawala and Hundi and desired the regular channel to be streamlined to discourage the practice. They also wanted to know what measures have been taken by the State Bank of Pakistan (SBP) in this regard.
The deputy governor State Bank of Pakistan informed the committee that an amendment has been proposed on the suggestions of the committee with regard to movement or transfer of foreign currency (inland movement), which would be up to maximum US $10,000 (or equivalent in other currencies). After a threadbare discussion, the committee unanimously recommended that the subject bill may be passed by the National Assembly with minor amendments.
The committee asked the State Bank of Pakistan to provide details of ten years history of total applications received with regard to permission to remit money along with details of those accepted and rejected in the next meeting. The committee also decided that tribunal be given powers to decide with regard to confiscation of property, currency, gold, silver or goods.
The committee also approved the 'Anti-Money Laundering (Amendment) Bill, 2019' and proposed amendments in various sections of the law; (i) to increase punishment for money laundering up to ten years and fine of five million rupees; (ii) do away with the condition of administrative process to cooperate with the Financial Intelligence Unit (FIU) of other countries for information sharing related to money laundering; (iii) prompt filing of suspicious transaction report and others.
The committee also decided that the "Islamabad Capital Territory Prohibition of Interest on Private Loans Bill, 2019" would be discussed in its upcoming meeting, and Akhuwat (NGO) and microfinance institutions will be called.
The committee deferred the agenda related to the recommendations of the Special Committee on Agricultural Products to uplift agriculture development in the country and decided that the same would be discussed exclusively. A briefing from the FBR was also deferred after the committee was informed that chairman was not feeling well and went for checkup in a hospital. The committee deferred the agenda with regard to a briefing by Competition Commission of Pakistan (CCP) about the sharp increase in prices of cement, flour, sugar, domestic airfare and automotive industry in the country.
Comments
Comments are closed.