ISLAMABAD: The National Assembly passed a bill to set up a new authority to counter money laundering and terror financing. The bill, introduced by State Minister for Foreign Affairs Hina Rabbani Khar, proposed a National Anti-Money Laundering and Counter Financing of Terrorism Authority in Pakistan.

The bill was taken up for consideration by the house after suspending the rules and without referring it to the relevant standing committee.

Ms Khar expressed the hope that the proposed authority would save Pakistan from punitive actions of the Financial Action Task Force (FATF) — a global money laundering and terrorism financing watchdog.

In October 2022, Pakistan was removed from the FATF “grey list” after four years. The list includes countries that remain under strict monitoring for deficiencies in legal, financial, regulatory, investigations, prosecution, judicial and non-government sectors to fight money laundering and combat terror financing.

According to the draft, the proposed authority will be headed by a chairman and will consist of the federal secretaries for finance, foreign affairs and interior; the State Bank of Pakistan governor, chairpersons of the Securities and Exchange Commission of Pakistan, National Account­ability Bureau, and Federal Board of Revenue; directors general of the Federal Investigation Agency, Anti Narcotics Force and Financial Monitoring Unit; national coordinator of the National Counter Terrorism Authority (Nacta); and chief secretaries of all four provinces, Azad Kashmir and Gilgit-Baltistan.

It may be mentioned that most of these officials were also part of Nacta, formed in 2008. The authority — set up to improve coordination on counter-terrorism efforts remained dormant for years as it could not convene its meetings because of the non-availability of members.

According to the new legislation, the proposed authority can convene meetings on the requisition of the chairman or half of its members.

Ms Khar explained the new body will institutionalise efforts to counter money laundering and terrorism financing, the two key requirements of the FATF.

The already established Nacta and the government’s Financial Monitoring Unit will be brought under the proposed authority.

As per the objectives of the draft bill, Pakistan is required to cooperate with international organisations “for anti-money laundering, countering financing of terrorism and targeted financial sanctions by way of promulgating requisite legal and regulatory framework.”

“Whereas while various federal and provincial agencies, departments, ministries and institutions of Pakistan are functioning in connection with anti-money laundering, countering of financing of terrorism and targeted financial sanctions under various laws in force, there is need of a focal institution to unify state response by planning, combining, coordinating and implementing government policy through an exhaustive strategic planning and necessary ancillary mechanism”, read the bill.