Pakistan to implement stricter laws to curb terror financing, money laundering
Pakistan last year was placed in 'grey list' by the FATF.
ISLAMABAD (Dunya News) – To get rid of the Financial Action Task Force’s (FATF) grey list, Pakistan has formulated effective measures, and is implementing stricter laws, rules and regulation to curb money laundering and hawala/hundi activities.
Meanwhile, according to proposed amendments in the relevant sections of the law, the punishment to money launderers could be increased to 10 years in jail and fine imposed on them might be increased from the existing Rs1 million to Rs5 million.
Moreover, properties owned by money launderers and offenders would be confiscated for 180 days, from the current 90 days.
Furthermore, an officer, who is found not reporting on money laundering and related crimes, could also be imposed with a fine of Rs500,000 and five years in jail.
According to proposed amendments, fine on an officer, who is found leaking details of suspicious transactions, could be increased from Rs500,000 to Rs2 million, and he/she could be imprisoned for five years.
The federal government has expressed hope that the proposed amendments would soon be passed.
Several members of the parliament have contended that such measures were essential in the light of recommendations of the FATF. The FATF has stressed restrictions on funding of banned organisations.
It has advised the authorities to freeze accounts of the terror outfits seize their assets. It has also advised implementation of anti-money laundering laws and strict vigilance of the financial institutions as well as measures for public awareness.
Pakistan last year was placed in ‘grey list’ by FATF for failing to implement the action plan related to terror financing.
The inter-government body asked Pakistan to take a series of steps to avoid getting blacklisted, something that can have serious implications for the country at a time when it is already facing economic crunch.
A meeting of the FATF is expected to take place this month in Washington where member countries would review Pakistan’s report detailing steps it has taken to plug loopholes and other deficiencies in its financial system.
