Only one conviction in last four years under AML law, MPs panel told

ISLAMABAD: The Federal Board of Revenue (FBR) has informed the National Assembly's Standing Committee on Finance that the tax authorities have attached properties worth Rs235 billion, in total 215 registered FIRs, during the last four years under the Anti Money Laundering (AML) law.

The National Assembly's Standing Committee on Finance met under chairmanship of Faiz Ullah here at the Parliament House on Wednesday. When the parliamentarians inquired about convictions before a court of law under the AML to satisfy the Financial Action Task Force (FATF), the FBR high-ups replied that the first conviction was achieved in a case based in Peshawar related to Inland Revenue (IR).

However, there was no conviction on Customs side, said FBR’s Director General Intelligence & Investigation of Inland Revenue Aamir Talpur, while testifying before the NA panel. “To implement the AML Law, we have registered 215 FIRs against 267 accused and attached properties worth Rs235 billion involving a tax amount of Rs76 billion. The FBR also attached 640 bank accounts.

The Financial Monitoring Unit (FMU) sends us Suspicious Transaction Reports (STRs) after receiving and analyzing data from 8 to 9 relevant agencies." The FBR cannot close down an investigation on its own, Aamir Talpur said.

The Chairman of NA Panel, Faiz Ullah, raised concerns by Faisalabad's business community on the rampant use of AML laws against them and argued that tax evasion and money laundering should be dealt with separately. PMLN leader Ahsan Iqbal also argued that the laws were bulldozed in haste to pass this AML law to victimize Mian Nawaz Sharif, but now this law was being used to harrass businessmen. The Chairman FBR, Dr. Ashfaque Ahmed, said tax evasion having linkages of criminal proceeds was handed over to the jurisdiction of tax machinery. Despite limited workforce, he said that the FBR had to perform reluctantly in accordance with the mandate given by the Parliament.

The FBR’s DG I&I IR, Aamir Talpur, said that Financial Monitoring Unit is the focal point for receiving all data and after analysing it, Suspicious Transaction Reports (STRs) are prepared, which are forwarded to the relevant law enforcing agencies. In case of tax-related issues of Income Tax or Sales Tax, the STRs were forwarded to FBR’s Inland Revenue and in case of Customs, it is forwarded to FBR’s Customs Intelligence Wing. He cited the example of an 80-year-old person who deposited multimillion rupees cash while declaring taxable income of just Rs0.2 million. He said that the FBR collected evidence and presented it before the court of law following which the properties and banks accounts were attached, he added.

The PPP Parliamentarian's Dr. Nafisa Shah asked for furnishing details of Saudi loan deposit and oil facility to the tune of $4.2 billion for one year, in the next meeting at which the Director General Debt Ministry of Finance requested for an in-camera session for sharing details of the Saudi agreement.

The Ministry of Finance also presented Federal Government Properties Management Bill 2021 before the committee. The new bill proposed to establish Property Management Authority under a Director General for three years tenure. Following this, a board will also be established and this Authority will have the mandate to develop properties for commercial purposes. It will have the powers to mortgage, rent, or lease out government-owned properties.

PPP MNA Dr. Nafisa Shah and PMLN's Ahsan Iqbal strongly opposed the bill, arguing it would open a new Pandora's box. They asked for incorporating the viewpoint of major stakeholders such as railways, defense ministry, ports and shipping and others because neither the ministries nor the departments would be willing to hand over their properties to the proposed authority. The committee deferred its approval for the next meeting.