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October 23, 2017

Criminal laundering of funds in Pakistan

The Mutual Evaluation Report – “Anti-Money Laundering and Combating the Financing of Terrorism” focusing on Pakistan by Asia/pacific Group on Money Laundering, which was released a few years ago throws ample light on Pakistan and the issue of money laundering. The latest report by the US Bureau of Counterterrorism goes on to validate the point that the situation in Pakistan continues to remain adrift over the years

The Mutual Evaluation Report of 2009 points out:

There is evidence that criminals laundering funds in Pakistan are purchasing real estate, abusing corporate entities to access the financial sector, laundering money through trade and abusing informal channels in Pakistan. Funds for terrorism came from proceeds of crime (including bank robbery, kidnap for ransom, and proceeds of drugs flowing from Afghanistan), with cases of cash couriers and misuse of charities facilitating terrorist financing.

Key Findings
Pakistan has criminalized money laundering (ML) and terrorism financing (TF). Law enforcement authorities still find it difficult to gather evidence for the money laundering offence without conviction for the predicate offence. Some key predicate offences are missing. A wide range of terrorism financing acts is criminalized. There is no criminalization of the financing of individual terrorists or terrorist organizations, other than proscribed ones. Pakistan can freeze terrorist assets under UNSCR 1267. To implement UNSCR 1373, Pakistan uses a domestic proscription mechanism under the Anti-Terrorism Act 1997 (ATA). Associated freezing mechanisms do not extend to all types of asset. Domestic proscription is limited to certain types of organizations. Law enforcement and prosecution authorities have powers to prosecute ML and TF. They are currently not using these tools.

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