Senate Passes Bill for New Anti-Money Laundering Authority, Countering Terrorism Financing
The Senate has recently passed a bill aimed at establishing a new authority to combat money laundering and terrorism financing in Pakistan. Despite opposition from some Senators, the legislation was rushed through the National Assembly and received approval from the upper house of Parliament. The title of the bill is the National Anti-Money Laundering and Counter Financing of Terrorism Authority Bill.
The proposed authority will be led by a chairman and will include several key officials from various government bodies. This includes the federal secretaries for finance, foreign affairs, and interior, as well as the governor of the State Bank of Pakistan, chairpersons of the Securities and Exchange Commission of Pakistan, National Accountability Bureau, and Federal Board of Revenue. Directors general of the Federal Investigation Agency, Anti Narcotics Force, and Financial Monitoring Unit, along with the national coordinator of the National Counter Terrorism Authority (Nacta), and chief secretaries of all four provinces, Azad Kashmir, and Gilgit-Baltistan will also be part of the authority.
It is worth noting that many of these officials were also members of Nacta, which was formed in 2008. However, Nacta remained inactive for years due to the unavailability of its members and the inability to convene meetings. The new legislation aims to address this issue by granting the proposed authority the power to hold meetings on the requisition of the chairman or half of its members.
State Minister for Foreign Affairs Hina Rabbani Khar presented the bill in the Senate and highlighted the importance of its passage. She emphasized that the bill aims to institutionalize the work done by Pakistan to improve its efforts in countering money laundering and terrorism financing, particularly to secure the country’s removal from the Financial Action Task Force (FATF) grey list. Khar provided a historical overview of FATF’s role as a global norms setter in anti-money laundering, counter-terrorism financing, and proliferation control.
While tabling the bill, Khar outlined the need for the proposed authority, stating that the monitoring of money laundering and terror financing cannot be confined to one area. The authority aims to bring together the work done by various government departments and provinces, allowing for better coordination, monitoring, and identification of potential loopholes.
Finance Minister Ishaq Dar and Law Minister Azam Nazeer Tarar both emphasized the importance of the legislation for national interest and urged the Senate to pass it promptly. They acknowledged the sensitive nature of the subject and the country’s commitment to fulfill its obligations to exit the FATF grey list.
In addition to the anti-money laundering and counter-terrorism financing authority, the Senate also passed a bill for the reorganization of the National Logistics Cell (NLC). The bill sets up a National Logistics Corporation to carry out logistics, infrastructure, and other functions previously handled by the NLC. All funds, properties, and employees of the NLC will be transferred to the new corporation.
The bill aims to strengthen Pakistan’s efforts in combating money laundering and terrorism financing by establishing a unified authority responsible for coordinating and implementing government policies on these matters. It is seen as a crucial step to address the country’s international commitments and improve coordination among various departments and provinces. The passage of the bill in the Senate demonstrates the government’s commitment to countering money laundering and terrorism financing and marks an important development in Pakistan’s efforts to combat these illicit activities.
