FBR decides to set up anti-money laundering wing

ISLAMABAD: The Federal Board of Revenue for the first time decided to set up an Anti-Money Laundering Wing in the Directorate General of Intelligence and Investigation to exclusively detect, investigate and prosecute those involved in financial crimes and money laundering through transfer of unexplained funds or undisclosed income abroad.

Sources told Business Recorder here on Thursday that the proposed Anti-Money Laundering Wing of the intelligence directorate of FBR would play a key role in taking action against the organised gangs, involved in financial crimes and money laundering. This is for the first time the customs intelligence department would be directly involved in detection and prosecution of the anti-money laundering cases.

The proposed Anti-Money Laundering Wing would directly investigate or co-ordinate inquiry into organised tax evasion, tax fraud, money laundering and financial crimes in close liaison with empowered agencies under any Pakistani law.

There are cases where huge amounts of foreign exchange has been seized or confiscated at airports or ports by the customs officials. In such cases, two offences might have been simultaneously taking place i.e. violation of Customs Act, 1969/Foreign Exchange Regulations and Anti-Money Laundering Law. On one side, the person has committed an offence of illegally transferring money aboard. On the other hand, there might be case involving Anti-Money Laundering Law. These offences could be simultaneously prosecuted under the Customs Act, 1969 and Anti-Money Laundering Law. In order to check such cases, the intelligence arm of the FBR would establish an exclusive Anti-Money Laundering Wing, sources explained.

Sources said that the federal government, vide its notification dated August 24, 2010, made it clear that the Directorate General Intelligence & Investigation - FBR as one of the five leading agencies in Pakistan to deal with the cases of money laundering. Accordingly, the Directorate General created Anti-Money Laundering Units at its HQ and all Regional Offices with in its given resources. However, due to shortage of officers and staff anti-money laundering functions were assigned as an additional duty.

There is no denying the fact that unless financial crimes are interdicted through an effective anti-money laundering regime, the criminals would continue flourishing. It is a proven fact that the countries leading in Anti-Money Laundering enforcement have, as a pre-requisite, a dedicated work force with adequate financial resources at their disposal. The Directorate General Intelligence is trying its level best to enhance the capacity of its officers and staff in the field of Anti-Money Laundering through local and foreign training. It is, however, felt that unless a specialised, dedicated work force is created for Anti-Money Laundering the results expected from us, under Vienna Convention and Palermo Convention ratified by Pakistan, can not be achieved fully, sources said.

In view of current circumstances, sources said that the Directorate General feels that a separate, dedicated Anti-Money Laundering Wing be created to exclusively handle investigation and prosecution of AML cases. In this connection, the directorate has asked the Board to create the following posts in this Directorate General for the proposed AML Wing so that it becomes an effective and viable entity to deal with the menace of money laundering.

The directorate of intelligence customs has further requested the FBR to create new posts of Additional Directors and Deputy Directors at DG Intelligence Headquarters and Regional Offices of Karachi, Lahore, Peshawar and Quetta, sources added.