ISLAMABAD – To get rid of the Financial Action Task Force’s (FATF) greylist, Pakistan has formulated effective measures, and is implementingstricter laws, rules and regulation to curb money laundering andhawala/hundi activities.
Meanwhile, according to proposed amendments in the relevant sections of thelaw, the punishment to money launderers could be increased to 10 years injail and fine imposed on them might be increased from the existing Rs1million to Rs5 million.
Moreover, properties owned by money launderers and offenders would beconfiscated for 180 days, from the current 90 days.
Furthermore, an officer, who is found not reporting on money laundering andrelated crimes, could also be imposed with a fine of Rs500,000 and fiveyears in jail.
According to proposed amendments, fine on an officer, who is found leakingdetails of suspicious transactions, could be increased from Rs500,000 toRs2 million, and he/she could be imprisoned for five years.
The federal government has expressed hope that the proposed amendmentswould soon be passed.
Several members of the parliament have contended that such measures wereessential in the light of recommendations of the FATF. The FATF hasstressed restrictions on funding of banned organisations.
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It has advised the authorities to freeze accounts of the terror outfitsseize their assets. It has also advised implementation of anti-moneylaundering laws and strict vigilance of the financial institutions as wellas measures for public awareness.
Pakistan last year was placed in ‘grey list’ by FATF for failing toimplement the action plan related to terror financing.
The inter-government body asked Pakistan to take a series of steps to avoidgetting blacklisted, something that can have serious implications for thecountry at a time when it is already facing economic crunch.
A meeting of the FATF is expected to take place this month in Washingtonwhere member countries would review Pakistan’s report detailing steps ithas taken to plug loopholes and other deficiencies in its financial system.
