Money laundering to be made non-bailable offence.

The government is set to introduce on Wednesday (today) key amendments to the Anti-Money Laundering (AML) Act 2010 and the Federal Investigation Act (FIA) 1974 as part of the Finance Supplementary (Second Amendment) Bill 2019 to comply with the requirements of the Financial Action Task Force (FATF).

According to Dawn sources, Finance Minister Asad Umar will brief the federal cabinet on the supplementary finance bill, explaining the reasons and targets of reform packages for various sectors of the economy including small and medium enterprises, agriculture, industry, housing, stock market and exports. The sources added that various changes to laws and regulations had been under discussion for months to address shortcomings related to terror financing and money laundering, but did not materialise for various reasons. Now the government has found an easier legal course in the form of a money bill 2018-19.

Many laws being amended through finance bill to meet FATF requirements

Most of the changes would be made in the FIA of 1974, AML Act 2010, and the related tax laws to facilitate inter-agency coordination and investigations. The amendments, which had been finalised by a committee led by the finance minister, refer to all related agencies working on matters relating to FATF that put Pakistan on the grey list last year for not 'doing enough' to meet UN resolutions against organisations purportedly involved in terror financing and money laundering.

These sources said that money laundering would be defined as an offence for which bail would not be available, and a crime punishable under various clauses of a series of laws. The punishment for those involved in the illegal transfer of funds is being enhanced under the new money bill to three to 10 years, from the existing maximum imprisonment clause of a two-year term.

The fine, an official explained, was also being increased from Rs5 million to Rs50m for a director of an exchange company found involved in money laundering, hundi or hawala business. Likewise, the properties of such persons would also be attached as case property for six months instead of the 90 days under the existing laws.

Further, a new section in the proposed money bill would also extend the jurisdiction of FIA to the whole of Pakistan, including new tribal districts recently merged with Khyber Pakhtunkhwa, in accordance with the provisions of Article 247 of the Constitution. Some changes are to be made to the Foreign Exchange...