The Pakistan-Tehreek-e-Insaf (PTI)-led incumbent government has taken various steps to bring back stashed money by the money launderers for the last decades.
In this regard, besides strengthening the Federal Board of Revenue (FBR) and Financial Monitoring Unit, Asset Recovery Unit has also been established by the federal government.
These departments have taken various steps to bring back stashed money by the money launderers for the last decades from foreign countries.
The detail of steps taken/progress made by these departments are given below:—
- The FBR has created Anti Money Laundering cells at HQ’s office as well as the Currency Detection Units (CDUs).
- Pakistan has been assigned the rating of a ‘largely compliant’ Jurisdiction by Global Forum on Transparency and exchange of information.
- Pakistan has put in place the requisite paraphernalia for automatic exchanges from September 2018 and onwards. Pakistan has received bank account information of Pakistan residents from 28 jurisdictions.
- A Multilateral Competent Authority Agreement has been signed which will provide country by country reporting.
- Pakistan has signed Avoidance of Double Taxation Agreements with 65 countries which provides that the contracting states shall exchange information to check tax evasion and fraud.
- FBR got hold of the information appearing in Panama & Paradise leaks and information related to properties held by Pakistanis in UAE. Cases having actionable information have been communicated to the field formations for necessary action under the law. 8,000 requests for further actionable information have also been sent to UAE.
- Pakistan received data from 28 jurisdictions under the OECD framework in September 2018 and has shared actionable information with field formations to take action under the law.
- Proceedings have been initiated under the law in cases of those foreign accounts holders appearing in exchange data which have not availed amnesty 2018-19.
- FBR has so far recovered Rs 2,201 billion by utilizing the information received under the OECD’s common reporting standards (CRS).
- UAE has been requested through diplomatic channels to look into the matter of Pakistanis hiding behind iqama and other schemes of UAE.
- The MoUs concerning cooperation in the exchange of financial intelligence related to money laundering, associated predicate offences, and terrorism financing have been signed with Financial Intelligence Units of Iran, Sri Lanka, Turkmenistan, Turkey, Kazakhstan, UK, Qatar, Malawi, China, Lebanon and Seychelles. The MoUs with FIUs of UAE, Australia, Tajikistan, Belarus, and Indonesia are expected to be approved by the Federal Cabinet soon.
- The Assets Recovery Unit has been established.
- Amendments to the Anti-Money Laundering Act, 2010 have been made.
- Cooperation with foreign jurisdictions including the United Kingdom and the United States has been enhanced. In relation to the UK, both governments have appointed Special Envoys who liaise and interact on all operational and policy matters in relation to money laundering.
- Mutual Legal Assistance Bill has been prepared. Which the National Assembly has passed and is currently in the Senate. This will allow Pakistan legal enforcement and prosecution authorities to obtain all relevant evidence from overseas.
- Anti-Money Laundering Unit with the FIA has been established.
- Better coordination with law enforcement and investigation agencies has been achieved.
- International taxation Directorate within the FBR has been established.
Note: The above information was shared with the National Assembly on June 8, 2020 by the Minister for Finance and Revenue.
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