Notices to traders under anti-money laundering law: Senate body on finance seeks clarification

ISLAMABAD: The Senate Standing Committee on Finance has expressed concern over the issuance of notices to business community under Anti-Money Laundering Act (AMLA) and wanted a clarification in this regard from the Financial Monitoring Unit (FMU).

The issue of the FMU was discussed in detail during the meeting held at the Parliament House on Wednesday.

The FBR officials briefed the committee on the detailed list containing names of all persons/businesses issued notices under Anti-Money Laundering Act (AMLA).

Anti-Money Laundering Act: DG I&I-IR asked to initiate proceedings against ‘fit’ accused

While discussing the matter of notices which were being issued to businessmen and politicians under the AMLA, officials informed that special court has quashed the cases and order of the special court will be shared with the committee in the next meeting. However, the members suggested that an action should be taken against officers, in cases which were initiated on mala fide intention.

The FBR officials informed that the Directorate General of Intelligence & Investigation-Inland Revenue has been designated as investigating and prosecuting agency under Anti-Money Laundering Act, 2010.

The DG I&I-IR is mandated to investigate and prosecute Money Laundering offence based on the specified predicate offences of tax evasion investigation under the AML Act, 2010 is triggered from the Financial Intelligence (Fls) received from the Financial Monitoring Unit (FMU) of Pakistan and under section 6 & 7 of AMLA 2010. Under AMLA 2010, the DG I&I-IR till date registered 243 cases of money laundering.

FBR Chairman Asim Ahmed stated that the FBR has drafted a standing operating procedure (SOP) in this regard. In two cases, earlier record was not given by the businessmen in response to notices. Later record was provided and subsequently notices were withdrawn.

The meeting of the Senate Standing Committee on Finance also expressed concern over growing smuggling of goods and deplored that no action is visible against those responsible for the smuggling. The meeting was presided over by Senator Salim Mandviwala has taken up a case of harassment of traders belonging to Balochistan by Customs authorities. The members of the committee stated that small traders in Karachi and Lahore are raided and goods confiscated but the root cause was not being addressed.

The members added that those who have been the smuggling allowing this menace as actual culprits facilitating the menace are not being touched. The members also complained that the genuine importers are also being harassed along with smugglers.

Sardar Shafiq Tareen also pointed out that the entire seized goods are not shown by the Customs officials. There is no truth in the harassment of Pashtun businessmen, Chairman Federal Board of Revenue (FBR) Asim Ahmed said and added the FBR is working with various agencies with regard to anti-smuggling.

He added that anti-trafficking operation in Bolton Market has seized the items.

Senator Farooq H Naik said that dollars are being smuggled to Afghanistan on a large scale and wanted to know how this has been happening.

Moreover, the committee was briefed on the issue of excluding private secretaries from executive allowance which is currently being given to officers from BS-17 to BS-22. State Minister for Finance and Revenue Aisha Ghaus Pasha ensured the committee that the ministry is deliberating on the matter and an adequate relief will be provided to every employee.

The meeting was told that by October, the smuggling of dollars and other commodities will end upon this Naek said that it seems that FBR is also waiting for the new government. Senator Faisal Saleem Rehman stated that border management is essential.

Some members stated that huge money is being made from smuggling in five districts of Balochistan. Senator Anwar-ul-Haq Kakar said that the things that are being smuggled are coming from the borders, the official is responsible. Senator Kamil Ali Agha said that against how many officials FBR has taken action.

Senator Anwar-ul-Haq Kakar expressed concern out the oil smuggling in Balochistan and apprised that around 2 to 3 million litres of Iranian oil enter every day in Pakistan.

In addition, the committee deliberated on the issue of incorrect appeal by PIC related to Pakistani pensioners living abroad. Officials of Ministry of Foreign Affairs informed that a letter has been written to fifteen Pak Missions abroad to provide the details of pensioners, however, nine missions have provided the requisite information and remaining didn’t submit yet. The chairman directed the officials to provide details of all pensioners living abroad in the next meeting.

The meeting was attended by Senator Farooq Hamid Naek, Senator Saadia Abbasi, Senator Faisal Saleem Rehman, Senator Kamil Ali Agha, Senator Dilawar Khan, Senator Anwar-ul-Haq Kakar, Senator Sardar Muhammad Shafiq Tareen, State Minister for Finance and Revenue Aisha Ghaus Pasha, Chairman FBR Asim Ahmad and other senior officers of attached departments were also in attendance.

Copyright Business Recorder, 2023