Anti-Money Laundering Act: 149 notices in response to 767 complaints issued: FBR

ISLAMABAD: The Chairman Federal Board of Revenue Asim Ahmad has informed the Senate Standing Committee on Finance and Revenue that the tax department has issued 149 notices on 767 complaints worth Rs358 billion under the Anti-Money Laundering Act.

The meeting of the committee was held under the chair of Senator Saleem Mandviwalla on Wednesday.

The Chairman Committee said that FBR has been issuing notices to the business community under the anti- money laundering act.

Mandivwala said that he was concerned about these issues and wanted that tax evasion should not be made part of the money laundering. He said he had requested Finance Minister Ishaq Dar when he was finance minister back in 2016 in this regard but his contention was that there was pressure on the government to do so.

The meeting was informed by the Chairman FBR that Financial Monitoring Unit (FMU) forward reports of suspicious transactions to different departments including FBR and the department also verify such transaction from the banks and provide an opportunity to the relevant suspect to explain his position before issuing notice to him. He further added only transactions worth Rs 10 million or above are reported under Anti-Money Laundering Act.

The meeting was told that FBR has proceeded in 254 cases since 2016 after receiving 767 complaints amounting Rs358 billion.

Senators and chairman of the committee were of the view that the matters of suspicious transactions should be investigated under tax evasion instead of anti-money laundering act.

On the issue of withdrawal of appeals by the Federal government from Federal Shariat Court verdict in Riba case, the State Bank of Pakistan (SBP) informed the committee that the Federal Shariat Court in its judgment set the June 2022 compliance date of the verdict and appeals were filed for review in time line for compliance.

Minister of State for Finance Dr Aisha Ghaus Pasha said that government is committed to Riba free financial system but transformation from conventional banking to Islamic banking would take time whereas SBP stated before doing public debt and monetary policy issue has to be resolved.

Senator Saleem Mandviwalla said that he received letters from Bank of China and other foreign banks operating in Pakistan wherein they stated that it would be difficult for them to operate in interest free banking system.

The senate committee was also briefed by the ministry on vacant positions of board members of Competition Commission of Pakistan (CCP).

Chairperson CCP Rahat Kunain Hassan apprised the committee that advertisement for three vacant positions has been advertised and the process will be completed soon enough. The Chair directed the ministry to submit details on the matter once the process is completed.

The Senate body congratulated the Khawaja Masood Akhtar owner of ‘FORWARD Sports’ for being the Pakistan sole company, whose footballs were used in FIFA 2022 Qatar World Cup. Senator Saleem Mandviwalla stated that Khawaja is another success story of Pakistan, whose footsteps shall be followed by the other industrialists of Pakistan. He further added that Khawaja played a pivotal role in displaying the positive image of Pakistan worldwide. The committee also endorsed Mr. Khawaja was named for the Highest Civilian Award for his contributions in the manufacturing industry.

Dawlance Representative said that prevailing circumstance have made it difficult for them to continue their operation and due to non-issuance of LCs the company is losing Rs.500 million monthly and so far 1000 employees have been laid off and 2000 more would be laid off.

Copyright Business Recorder, 2022