ISLAMABAD: Prime Minister Imran Khan Friday directed that a new legislation should be finalized within a week’s time to effectively deal with the offences related to money laundering and to further strengthen existing laws to effectively check Hawala, Hundi and other illegal/corrupt practices that were negatively impacting the country’s economy.

He has also approved a package to further incentivize remittances through legal channels.

The decisions were taken during a high level meeting here at the PM Office with Prime Minister Imran Khan in chair.

The meeting was attended by Finance Minister Asad Omar, Attorney General Anwar Mansoor Khan, Special Assistant to PM Zulfiqar Abbas Bukhari, Special Assistant to PM Iftikhar Durrani, Federal Secretaries, DG FIA, Chairman NADRA, Deputy Governor State Bank and other senior officials.

It was decided during the meeting that State Bank of Pakistan, being the regulatory authority in the banking sector, would take action against elements who were involved in facilitating opening and operation of fake bank accounts in the country.

The Prime Minister also tasked Secretary Finance to submit recommendations for regulating trade under Pak-Afghan Transit Trade Agreement with an aim to effectively check misuse of the agreement.

It was also decided during the meeting that necessary amendments would be introduced in the existing laws including Anti-Money Laundering Act 2010 to further strengthen these laws for effectively dealing with the cases of money laundering and other illegal practices.

Secretary Interior informed the meeting that Task Forces, at national as well as provincial levels, had been constituted with an aim to identify legislative and administrative constraints in effective implementation of AML activities and to suggest corrective measures towards its eradication.

The Provincial Task Forces have been mandated to take timely action against individuals/institutions identified as involved in activities falling within domains of Hawala /Hundi.

The National Task Force will submit monthly report to the PM Office on performance including coordinated actions undertaken and recoveries effected.

Secretary Interior also identified various other actions including making the Islamabad International Airport as a model airport with regards to inter-agency coordination and installation of truck scanners at Torkham that were aimed at checking money laundering, smuggling and other illegal practices.

The Prime Minister also approved a package for enhancement of incentives for remittances through legal channels.

It was decided to increase airtime to Rs 2 against each US dollar received through M Wallet.

It was also decided that Banks/Exchange Companies would be reimbursed Rs 1 per US dollar as marketing expenses and promotional activities on remittances exceeding 15% in FY19 compared to FY18.

The Prime Minister also approved a proposal for launch of awareness campaign by SBP for remittance customers.

The budgetary impact of the package has been estimated to around Rs. 2.3 billion.