This tag provides stories related to money laundering. PkrRevenue is committed to provide all updates related to money laundering.
Government expands AML reforms to combat money laundering and improve property sector transparency
Pakistan has intensified monitoring of real-estate agents as part of broader efforts to curb black money, money laundering and terror financing through the property sector, according to official documents.
(more…)
Islamabad, January 4, 2026 — Federal Interior Minister Mohsin Naqvi on Sunday ordered a comprehensive and indiscriminate crackdown against the money-laundering mafia, directing law-enforcement agencies to take firm action against major operators involved in illegal financial activities across the country.
(more…)Karachi, November 30 – The Federal Investigation Agency (FIA) has issued a notice branding Chairman Meinhardt Shahzad Naseem and CEO Omar Shahzad, the owners of the Singapore-based construction company Meinhardt, as absconders.
(more…)
Islamabad, October 4, 2023 – Pakistan’s customs authorities have revealed that they detected money laundering activities worth a staggering Rs 69.5 billion over the past five years.
(more…)
KARACHI: State Bank of Pakistan (SBP) has warned general public against sale and purchase through illegal operators and transfer of foreign currency through Hawala and Hundi.
The SBP informed the general public that a person may unknowingly become part of money laundering and terrorism financing offence by dealing with illegal foreign exchange operators.
The money laundering and terrorism financing offences are punishable under Anti Money Laundering (AML) Act 2010 and Anti Terrorism Act (ATA), 1997.
“It is advised in your self-interest to carry foreign currency sale, purchase and remittance transaction with only SBP authorized banks and exchange companies.”
The SBP also advised that do not forget to collect system generated official receipt of transactions. If a person come across any illegal foreign exchange sale/purchase and Hawala/Hundi Operators should report the Federal Investigation Agency.
The SBP said that the business of foreign exchange in Pakistan is regulated under Foreign Exchange Regulation Act 9FERA) 1947.
State Bank of Pakistan issues authorization to banks and exchange companies to conduct foreign exchange business. Any person (individual or entity) other than those authorized by the SBP are doing illegal foreign exchange business which is punishable offence under FERA 1947 and AMLA 2010.
All such operators are informed in their own interest not to indulge in illegal foreign exchange sale/purchase and hawala/hundi business.
“Extensive action against illegal currency exchange and hawala/hundi operators is being carried out by relevant law enforcement agencies,” the SBP said.
ISLAMABAD: The government has tightened monitoring of investors of national savings to comply with conditions of Financial Action Task Force (FATF) and prevent transactions related to money laundering and terror financing.
The Central Directorate of National Savings (CDNS) has prepared a comprehensive plan to examine the customers and issued instructions to all its regional offices in the country.
The plan has been prepared by the National Savings (AML&CFT) Supervisory Board in consultation with the Financial Monitoring Unit (FMU).
Under the plan the offices of the national savings have been advised to follow the guidelines in examining and monitoring the customs of the saving certificates and prize bonds.
All those customers will be examined where overall investment quantum, account balance or transactional activity is not in line with their businesses, known means or stated purpose of products.
The authorities issued red flags for transactional patterns related to all products, including certificates, accounts and prize bonds.
Following are the red flags to identify suspicious transactions:
· Nominee is not a close relative or change in nominee (for instance, to include non-family members).
· Third party check is provided for investment.
· Purchase of a long-term investment product followed shortly thereafter by a request to liquidate the position to get back the invested amount.
· Overall investment quantum, account balance or transactional activity is not in line with the customer’s business, known means or stated purpose of the product.
· Client is frequently purchasing savings certificates / prize bonds through unusual payments in cash which do not commensurate with his/her profile.
· Unusually high levels of investments or unusually large transactions in relation to what might reasonably be expected of clients with a similar profile.
· When transactions are conducted without any apparent legitimate or economic reason.
· Where multiple deposits are made by unrelated individuals.
· Large cash is deposited followed by early withdrawal.
· Where large deposits and withdrawals are made routinely, and the end of day balance is very low or nil.
· When a customer insists to buy multiple savings certificates/prize bonds through structured/broken cash transactions to avoid CTR reporting threshold (PKR 2.0 Million and above).
· Two or more customers (Linked/associated with each other) working together to break one cash transaction into two or more transactions to evade the CTR reporting requirement.
· Purchase of higher denomination Prize Bonds against cash without providing any plausible justification.
· Encashment of higher denomination Prize Bonds without any plausible justification.
· When a customer is frequently converting one product into another (especially in the name of an unrelated third party) without any plausible justification.
· Numerous prizes are repeatedly/very frequently being claimed by the customer against winning prize bonds during a short span of time.
ISLAMABAD: Federal Board of Revenue (FBR) has launched action against suspicious transactions to curb money laundering in order to meet the requirement of Financial Action Task Force (FATF).
(more…)
ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has proposed amendments laws to prevent money laundering through corporate entities.
A statement issued on Tuesday said that the SECP has issued a set of notifications, soliciting public consultation on drafts of amendments to the Companies (Incorporation) Regulations, 2017, Companies (General Provisions and Forms) Regulations, 2018, Foreign Companies Regulations, 2018, and Limited Liability Partnership Regulations, 2018.
The proposed amendments collectively make disclosures regarding the ownership and control structure of the companies and limited liability partnerships more transparent.
These amendments, issued in line with the recommendations on transparency of legal persons issued by the Financial Action Task Force, will help in identifying the real owners of such entities.
The amendments also propose to explicitly prohibit the issuance or transfer of equity and debt securities of a bearer nature as well as to increase the period for retention of records of dissolved companies.
The amendments will address the deficiencies highlighted in the country’s mutual evaluation report published by the Asia Pacific Group on Money Laundering in October 2019.
With the effect of propose amendments, Companies and LLPs would have to provide additional information to SECP, if the ownership and control structure of such entities is obscured through a chain of multiple entities, whether registered in Pakistan or abroad.
The draft Regulations define an ultimate beneficial owner as a person who exercises ownership or control rights over a company or LLP indirectly through multiple layers of corporate entities or other legal persons or any other arrangements.
Amendments suggested specifying a threshold of a minimum of 25 percent of ownership or control rights of the ultimate beneficial owner in the reporting entity, which would be owned through multiple layers of intermediate corporate entities.
In order to give effect to the proposed amendments, the Commission has also publicized the substantive provisions being added to the enabling laws, i.e. the Companies Act, 2017 and the Limited Liability Partnership Act, 2017.
The proposed amendments are placed on SECP’s website for public consultation.
ISLAMABAD: The ministry of finance has constituted supervisory board to provide independent oversight of implementation of National Savings Schemes (AML and CFT) Rules, 2019.
The advisory board has been comprised of:
01. Additional Finance Secretary (Budget): Chairman
02. Syed Jahangir Shah, Director, State Bank of Pakistan: Member
03. Ms. Tanzila Nisar Mirza, Additional Director, Securities and Exchange Commission of Pakistan: Member
04. Adnan Imran, Director, Financial Monitoring Unit: Member
05. Joint Secretary (B-1), Ministry of Finance: Member/Secretary
As per the rules, the Supervisory Board shall provide independent oversight of implementation of these rules and take necessary enforcement actions against violations thereof.
The Finance Division shall provide all secretarial and administrative support to the Board for effective discharge of its responsibilities.
The Board shall, within two months of the commencement of these rules, devise its SOPs for supervision of CDNS to ensure compliance with AML and CFT requirements.
The Board shall have powers to issue appropriate standard operating procedures(SOPs), demand receipt of appropriate management information system on periodical basis, direct CDNS to take such actions as may be required to address deficiencies pointed out during such assessments and advise such enforcement actions as it may deem necessary.
The Board shall have powers to direct CDNS to take all reasonable measures to ensure compliance with provisions of the AML Act, 2010 and these rules.
The Board shall have powers to compel production of any information or record it may require for the discharge of its responsibilities and CDNS shall provide the information and record in such format and within such timelines as may be specified by the Board.
The Board shall have powers to engage chartered accountant firms from SBP’s approved panel of auditors to conduct onsite examinations, assess ML and TF risks posed, assess corresponding controls and determine compliance with the AML Act, 2010 and these rules and regulations issued from time to time.
If any provision of these rules, is contravened, or if any default is made in complying with any requirement of these rules or orders or SOPs issued there under, by any officer or official of CDNS, the person who contravened shall be punishable in accordance with the law for the time being in force.
ISLAMABAD: Financial Monitoring Unit (FMU) has been allowed to obtain information of taxpayers from tax authorities to check income tax returns and other declarations for money laundering and terror financing.
The FMU has been granted access to taxpayers’ data through amendment introduced to Section 216 of the Income Tax Ordinance, 2001. The amendment has been brought through Tax Laws (Second Amendment) Ordinance, 2001.
Under Section 216 of the Income Tax Ordinance, 2001, public servants are barred from disclosing any information relating to income tax filings, evidences or proceedings of any taxpayer.
Certain exceptions to this general prohibition are also contained in the said section whereby information may be disclosed to specified persons, organizations or authorities.
By way of an amendment made through the Second Amendment Ordinance, Financial Monitoring Unit (FMU) established under the Anti-Money Laundering Act, 2010 has been included in the list of such exceptions which do not fall within the ambit of confidentiality clause contained in Section 216, tax experts at PwC A F Ferguson Chartered Accountants said.
This amendment is intended to enable FMU to better implement anti-money laundering procedures by directly obtaining necessary information from public servants.