ISLAMABAD - A parliamentary committee has approved ‘The Anti-Money Laundering (Amendment) Bill, 2019’ and ‘The Foreign Exchange Regulation (Amendment) Bill, 2019’ with few amendments. The meeting of National Assembly Standing Committee on Finance, Revenue and Economic Affairs, which was held under the chairmanship of Asad Umar, discussed “The Anti-Money Laundering (Amendment) Bill, 2019” clause by clause. The Committee unanimously recommended that the subject Bill may be passed by the National Assembly with few amendments. Two major amendments are proposed in 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 Committee discussed “The Foreign Exchange Regulation (Amendment) Bill, 2019” clause by clause. Director General, Federal Investigation Agency (FIA) briefed the Committee about the penalties and procedure of the said Bill. Deputy Governor, State Bank of Pakistan informed the Committee that an amendment has been proposed on the suggestions of the Committee with regard to move or transfer of foreign currency (inland moment), which would be up to maximum US$ 10,000 (or eqauivalent in other currency). After threadbear discussion, the Committee unanimously recommended that the subject Bill may be passed by the National Assembly with minor amendments.
Director General Federal Investigation Agency (FIA) informed the committee that money laundering took place under over and under invoicing. Some of the people send their remittances worth of Rs40,000 through banking channels while Rs60,000 through illegal ways if they have to send to Rs100,000 to Pakistan. He further informed that dollars are being smuggled from Pakistan. One of money changers in Karachi was involved in money laundering worth of Rs16 billion. The committee was informed that 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 days is being removed because FATF wants prompt and immediate action on suspicious transaction.
The committee chairman expressed displeasure over the absence of Abdul Hafeez Shaikh, Adviser to Prime Minister on Finance and Revenue from the committee meeting.
The Committee also considered that “The Islamabad Capital Territory Prohibition of Interest on Private Loans Bill, 2019” would be discussed in its upcoming meeting, Akhuwat (NGO) and Microfinance Institutions will be called. The Committee deferred the agenda related to the recommendations of the Special Committee on Agricultural Products to uplift agriculture development in the country and decided that the same would be discussed exclusively. The Committee deferred the agenda with regard to the briefing by Competition Commission of Pakistan about the sharp increase of price in cement, flour, sugar, domestic airfare and automotive industry in the country.
Later, talking to the media, Chairman National Assembly Standing Committee on Finance and Revenue Asad Umar said that the country’s economy was put on the verge of collapse due to former Finance Minister Ishaq Dar’s wrong economic policies. He has clarified that his statement about Ishaq Dar’s policies specifically with respect to overvalued exchange rate was wrongly reported by the media. “In fact the exchange rate of Pakistan Rupee against US Dollar was artificially kept overvalued by the former Finance Minister, which seriously dented the country’s economy,” he added.