ISLAMABAD: The Federal Board of Revenue (FBR) has released comprehensive guidelines, outlined in Customs General Order (CGO) No. 01 of 2023, aimed at fortifying the Anti-Money Laundering (AML) and Counter Financing Terrorism (CFT) mechanism for Pakistan Customs.
The move underscores the government’s commitment to combat illicit financial activities and enhance the efficacy of customs procedures.
Under the new guidelines, the FBR has introduced a systematic approach for referrals to the Counter Terrorism Department (CTD) in cases involving currency seizures related to smuggling, misdeclaration, or non-declaration of various items. These include currency, bearer negotiable instruments, gold, jewelry, precious metals, gemstones, narcotics, psychotropic substances, or antiques. The criteria for referral include potential links to designated entities or proscribed organizations, violations of UN Security Council Resolutions on countering terrorism, and intelligence indicating terrorism financing (TF).
The FBR has mandated that cases meeting specific criteria, such as unexplained sources of large cash amounts, familial associations with designated individuals, or involvement in smuggling for designated individuals, should be referred to the CTD. Furthermore, investigations under the Customs Act, 1969, involving predicate offences under the Anti-Money Laundering Act, 2010 (AMLA), may also be referred to the CTD for parallel TF investigations.
To ensure effective inter-agency coordination, the existing mechanisms, including the Border Task Force (BTF) forum, will continue to facilitate information sharing, cooperation, and coordination against organized crimes, with a specific focus on money laundering and terrorism financing.
In parallel, the guidelines specify criteria for referring cases to the Directorate General of Intelligence and Investigation (Customs) under AMLA, 2010. Cases involving revenue loss of Rs. 50 million or above, individuals with a history of similar serious predicate offences or money laundering, and those believed to have committed money laundering offences or have links to national or transnational crimes related to money laundering, are eligible for referral. The FBR has emphasized that such actions will only be initiated after the approval of the concerned Collector or Director.
The guidelines also mandate the sharing of relevant records, statements, and evidence with the Directorate General of Intelligence and Investigation (Customs) for AML investigations. Regional Directorates are required to maintain records and share monthly progress reports, contributing to enhanced transparency and accountability.
The FBR’s directive is a strategic step towards reinforcing the anti-money laundering framework within Pakistan Customs, aligning with international standards and demonstrating the government’s commitment to combat financial crimes. The guidelines are expected to improve the efficiency and effectiveness of Customs operations, ensuring a more robust defense against illicit financial activities.
