AMLA: minister says FBR powers to be reviewed

ISLAMABAD: Finance Minister Muhammad Aurangzeb said on Saturday that the issuance of notices to the business community under Anti-Money Laundering Act (AMLA) is a very serious matter and the government would review AML powers available to the Federal Board of Revenue (FBR).

During review of the Finance Bill (2025-26) at the Senate Standing Committee on Finance on Saturday, Chairman of the committee Senator Salim Mandviwala took up the issue of AML notices to the taxpayers by the FBR.

The issue came to light when FBR Member Customs (Policy) explained creation of proposed Directorate General of Intelligence and Risk Management Customs under the Finance Bill 2025-26. The proposed Directorate would have the powers to exercise under the AML Act.

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Salim Mandviwala expressed serious concern over the powers to the Directorate General of Intelligence and Risk Management Customs for taking action against taxpayers under the AML law. “We have received many complaints on issuance of illegal notices to the business community under the AML”, he said.

All these notices issued in the past were withdrawn on the intervention of the Senate Standing Committee on Finance. These powers should not be given to the FBR officials as they were misused in the past, Mandviwala said.

Finance Minister assured the committee that it would look into the matter and would examine FBR powers under the AML law.

In a landmark move, the committee approved sweeping amendments to the Customs Act, 1969, targeting the issue of tempered and tampered chassis vehicles. As per the new law, any vehicle found with tampered chassis number, Cut-and-weld modifications or Re-stamped chassis will be presumed smuggled even if registered with any Motor Registration Authority.

FBR Chairman Langrial clarified that such vehicles will be confiscated and destroyed. They won’t be auctioned again. “In principle, these vehicles should be set on fire to avoid resale of parts.”

The Standing Committee recommended that the confiscation and destruction of such vehicles must occur within 30 days of seizure.

FBR Chairman said that the tampered vehicles cannot be allowed to be auctioned. Even if the tempered vehicles have been registered by the Motor Registration Authority, they are liable to be confiscation.

Chairman of the committee asked FBR to share number of confiscated vehicles used by the customs officials.

A committee member questioned that why customs department collected duties and taxes on tempered vehicles during legalization of non-duty paid cars under the last amnesty scheme.

FBR Member Customs explained that new section (“187A. Presumption as to legal character of vehicle), any vehicle is detained or seized under this Act or the rules made there under and such vehicle upon forensic examination is found to be having a tampered chassis number or cut and weld chassis or chassis number filled with welding material or re-stamped or body changed, such vehicle shall be presumed to be smuggled, even if registered with any Motor Registration Authority, and shall be liable to confiscation.

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