Islamabad witnessed an important milestone as the National Assembly successfully passed the Anti-Money Laundering and Counter-Financing of Terrorism Authority Bill, along with several other bills. This legislative move marks compliance with crucial conditions set forth by both the FATF (Financial Action Task Force) and IMF (International Monetary Fund).
The newly established National Anti-Money Laundering and Terrorism Authority will play a pivotal role in preventing money laundering and terrorist financing. Its responsibilities include monitoring and overseeing the actions taken by relevant agencies against these illicit activities. Moreover, the authority will possess the power to impose targeted financial sanctions, positioning itself as a focal point for FATF and other pertinent international organizations.
As per the provisions of the bill, the authority will be responsible for supervising the National Strategy for Combating Money Laundering and Terrorist Financing. It will also have the authority to approve the National Action Plan within the framework of this strategy and recommend amendments to relevant laws and regulations.
The authority will have the capacity to offer policy recommendations to both federal and provincial governments. It is mandatory for federal agencies and all provincial institutions to provide necessary information to the authority, and all such information shall be kept confidential.
The appointment of the Chairman and Director-General of the Authority will be at the Prime Minister’s discretion. Key members of the 20-member authority will include representatives from various important organizations and sectors such as Finance, Foreign Affairs, Home Affairs, State Bank, SECP, NAB, FIA, ANF, FBR, Financial Monitoring Unit, and NECTA.
The director of the authority will also serve as the general secretary. The Prime Minister holds the power to nominate any individual as a member of the authority. The authority is mandated to hold a minimum of two meetings annually.
To achieve its objectives effectively, the authority is empowered to enter into agreements or MoUs with national and international organizations. Additionally, the establishment of the National Anti-Money Laundering and Counter-Terrorism Authority Research and Development Fund has been proposed.
An important aspect of the bill is that the authority’s actions taken in good faith under the Act shall not be subjected to legal action. Furthermore, the passage of this law leads to the abolishment of the National Financial Action Task Force Coordination Committee and the National Financial Action Task Force. The authority is required to submit an annual report on its performance to the Federal Government.
