Proposed AML, FERA amendment bills: NA panel asks advisor, SBP governor to allay concerns

Expressing serious concern over the proposed Anti-Money Laundering (AML) Amendment Bill and the Foreign Exchange Regulation Amendment Bill 2019, the National Assembly Standing Committee on Finance said that Advisor on Finance Dr Abdul Hafeez Sheikh, secretary finance and governor State Bank of Pakistan should attend the next meeting to address the concerns of the members.
Soon after a senior official of the Finance Ministry ended briefing on the proposed amendments to the AML bill to the National Assembly Standing Committee on Finance, chaired by MNA Faiz Ullah, the members of committee, mostly from opposition parties, voiced their concern and stated that they are aware of FATF difficulties but can''t allow this legislation in the current shape. The chairman deferred the consideration of the proposed legislation till next meeting and decided to call advisor on finance, secretary finance and governor SBP in the next meeting to satisfy the concerns expressed by the members.
Earlier, briefing the committee Additional Secretary Finance Sohail Hashmi stated that two major amendments are proposed in AML - increase in punishment as well as making the offence cognizable and increase in punishment of the offence up to ten years and fine up to Rs 5 million from existing Rs 1 million.
Additionally, the meeting was told that through proposed amendments, the Financial Monitoring Unit (FMU) is being facilitated to become member of other countries'' financial units for exchange and access of information. Powers are being given to the investigating officer to arrest the person involved in the offences, besides attachment of property suspected of established through proceeds of money laundering for 180 days.
The meeting was also told that as required by the FATF, time limit of taking action by the FMU not later than 7 days is being removed because FATF wants prompt and immediate action on suspicious transaction. Suspicious transactions record would be maintained for 10 years.
As soon as the briefing by the Finance Ministry''s official concluded, Syed Naveed Qamar of Pakistan peoples Party (PPP) said, "This is not an acceptable piece of legislation as the law does not provide any check on the powers of investigating officer. This bill will not be passed and the government has to draft it in a way that it is not generalised to win the support of the opposition members."
Qaiser Ahmed Sheikh expressed fear the "law (with excessive and unchecked powers to the investigating officer) will lead to more harassment and corruption." Moreover, he added that "there is no punishment if investigating officer implicates an innocent person."
Ayesha Ghaus Pasha said that money laundering and terror financing must be curtailed but with check and balance on investigating officer.
The chairman of the committee said, "He agrees to the members'' concerns with regard to powers to the investigating officer." He stated that absence of advisor to prime minister on finance and secretary finance from such an important meeting is regrettable. "I do not see government''s will to deal with the challenge the country is facing; otherwise, the advisor and secretary finance should have been in the meeting to respond to the members'' concerns on the proposed AML (Amendment Bill 2019)."
"You should not conduct the meeting if advisor on finance and secretary finance do not come to the committee meeting," suggested member of the committee Hina Rabbani Khar to the chairman.