ISLAMABAD

Pakistan on Wednesday faced a setback ahead of IMF talks to start from October 26 as parliamentary committee once again denied approving Anti Money Laundering (Amendment) bill that would bring tax evasion and offences into ambit of AML.
Secretary Finance Dr Waqar Masood’s efforts to convince the Senators to approve the AML amendment bill from the Senate’s standing committee on Finance and Revenue went in vain on Wednesday due to stiff opposition from lawmakers. The government wanted to approve the AML (amendment) bill from the parliamentary committee before the start of talks with IMF, which is scheduled from October 26 to November 4 in Dubai.
Pakistan is committed to IMF to adopt AML amendments by November 2015. Chairman Senate Standing Committee on Finance and Revenue Senator Saleem Mandviwalla decided to discuss the ‘Anti Money Laundering (Amendment) bill’ on the request of the government, although it was not part of the committee’s meeting.
However, Senators of opposition parties Pakistan Muslim League (PML-Q) and Pakistan Peoples Party (PPP) strongly opposed the bill. “I am against this bill, which is amending on the demand of IMF,” said PPP Senator Fateh Mohammad Hassani. One would face charges of Anti Money Laundering if FBR imposes fine on him/her after passing the aforesaid bill, he added.
Senator Kamil Ali Agha of PML-Q also opposed the bill by saying government is passing the bill in haste to fulfill its commitments made with international institutions. He criticised the government for linking tax fraud with Anti Money Laundering. “The government will itself face the consequences of passing the bill in future,” he warned. “This is a very sensitive issue as it is feared that once a person comes under AML, he or she will be unable to transact with other countries”, Agha noted.
Senator Mohsin Khan Leghari said that government should not pass the bill in a hurry, as legislation even takes two to three years in United States. The government should address the concerns of the Senators before approving the Anti Money Laundering (amendment) bill, he demanded.
PTI’s Senator Mohsin Aziz, who was not present in the meeting, has asked the committee chairman via letter not to pass the bill without his presence. However, PML’s Senators Ayesha Raza Farooq and Nuzhat Sadiq have favoured the bill. “We should follow the international best practice to improve relations with other countries and institutions,” Senator Ayesha Raza Farooq said.
Committee chairman Senator Saleem Mandviwala said the bill would be discussed in next meeting when all its members would be present and the decision would be made with the majority votes.
Secretary Finance denied the pressure of the international financial institutions on amending the AML bill. “The government is making amendments in AML following the best international practices. Only tax fraud will be brought under the Anti Money Laundering,” he maintained.
He informed the committee that government had agreed with the Senators to bring down the fiscal offences under AML to five from 29. The government had given ample time to the committee to discuss the Anti Money Laundering (Amendment) bill, as it was introduced in the Senate’s panel in February this year.
Waqar Masood said that an investigating or prosecuting agency shall not charge any person with the offence of money laundering in relation to a predicate offence punishable under the Sales Tax, Income Tax Ordinance and the Federal Excise Act, 2005 without prior consultations of FMU (Financial Monitoring Unit).
The Senate’s body decided to take up the bill next week. The Senate’s Standing Committee on Finance and Revenue had held several meetings on discussing the AML amendment bill but failed to make consensus on the bill.