ISLAMABAD: Despite receiving warnings from the opposition benches to block approval of ‘draconian’ changes in Anti Money Laundering (AML) bill and restriction on movement of foreign currency within the country in Upper House of Parliament, the government has proposed sweeping powers for law enforcement agencies to convert money laundering as cognizable offense and arrest anyone without seeking approval of court of law.The government told the National Assembly panel that the changes proposed into AML bill 2019 and Foreign Exchange Regulations in order to satisfy the Financial Action Task Force (FATF), however, the committee members especially Hina Rabbani Khar, Naveed Qamar, Ahsan Iqbal, Qaiser Sheikh and Ayesha Ghous Pasha raised serious objections and inquired whether such draconian changes had ever been done in any other part of the world.The National Assembly Standing Committee on Finance under chairmanship of Faizullah belonging to ruling PTI on Thursday took up three crucial bills including Anti Money Laundering (AML) amendment bill 2019, Foreign Exchange Regulation (amendment) bill 2019 moved by the government and Eradication of Riba Bill 2019 moved by Maulana Abdul Akbrar Chitrali (MNA) here at the Parliament House and deferred approval into next meeting.Chairman of the Committee Faizullah directed the Advisor to PM on Finance Dr Abdul Hafeez Shaikh, Secretary Finance Younas Dagha and Governor State Bank of Pakistan Tariq Bajwa to appear in the next meeting of the committee for defending the governmentstance on these three important bills. The AML (amendment) bill 2019 proposed penalty amount on money laundering from one million to five million rupees, attachment of property from 90 days to 180 days, authorising investigating officer to arrest any person guilty of an offense punishable under this act and imprisonment of up to 10 years.Syed Naveed Qamar of PPP said that the proposed AML amendment bill was violation of civil and human rights and extended warning to the government that this bill would be blocked in the senate from approval as the treasury benches did not enjoy support of majority into the Upper House of Parliament.It was also pointed out by Hina Rabbani Khar that the law should not be made in such way that allowed its misuse. The members of committee, mostly from opposition parties, voiced their concerns and argued that they are aware of FATF difficulties but can’t allow this legislation in its existing proposed shape.On the proposed Fera amendment bill 2019, the SBP official briefed the committee that there would be restriction on movement of foreign exchange within the country just on the pattern of existing restriction where the foreign travelers could hold $10,000. However, the proposed law did not mention any limit and the members of the committee were amazed that how the government could restrict anyone from holding $50 to $100 during his movement from one to another city of the country. The committee members inquired whether any such restriction imposed in any other part of the world.While briefing the committee, Additional Secretary Finance Sohail Rajput stated that two major amendments were proposed into AML – increase in punishment as well as making the offence cognizable and increase in punishment of the offence up to ten years and fine up to Rs5 million from existing Rs1 million The meeting was told that through proposed amendments, the Financial Monitoring Unit (FMU) is being facilitated to become member of other countries’ financial units for exchange and access of information. Powers are being given to the investigating officer to arrest the person involved in the offences, besides attachment of property suspected of established through proceeds of money laundering for 180 days.The meeting was also told that as required by the FATF, time limit of taking action by the FMU not later than 7 day basis being removed because FATF wants prompt and immediate action on suspicious transaction reports (STRs). The Suspicious Transactions Record would be maintained for 10 years.The chairman of the committee extended his support to members concerns and said that with regard to powers to the investigating officer there was definitely need to insert changes to avoid its misuse. The government opposed Eradication Riba Bill and proposed that the phased wise approach was underway to promote Islamic banking in the country.
from The News International - National http://bit.ly/2GX7eBw
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