Daily Times

KARACHI: Tax experts raised reservations about the implementation of Anti-Money Laundering Act 2010 (AMLA 2010) by the Federal Board of Revenue. The Pakistan Tax Bar Association (PTBA) said lack of adequate training for the FBR officers to understand and implement AMLA 2010 was creating problems for law-abiding traders.

The federal government appointed Intelligence and Investigation-Inland Revenue as the investigation and prosecution agency.

In a letter to the FBR chairman and Ministry of Finance, the PTBA said it was a matter of serious concern that the FBR officers were issuing notices under AMLA 2010 to third parties seeking information and stating in correspondence that the accused party was being investigated for money laundering. “This in our opinion is not only unfair and unjust, but is seriously tarnishing the reputation of individuals, who have not committed any crime. Such action, in our opinion, is contrary to the provisions of AMLA 2010 and notices in this regard clearly indicate lack of proper understanding of the provisions of AMLA 2010 by the officers of FBR”.

“We have observed that, at present, Standard Operating Procedures (SOPs) have not been developed by the FBR for its officers enforcing AMLA 2010 and they are not fully trained to translate policy of the new law into an acceptable and workable implementation of law and practice. We are also of the view that in addition to policies and procedures, there should also be a process to support and facilitate effective implementation of procedures, which should be reviewed and updated regularly”, said Memon.

The PTBA offered its services to assist the FBR for training of its officers and development of SOPs. We suggest the FBR should initiate intensive training of the officers and staff responsible in enforcing the provisions of AMLA 2010, said the PTBA. The PTBA further suggested the FBR should develop detailed SOPs for its officers and staff in consultation with the stakeholders for enforcement of AMLA 2010 and no putative action should be taken against an individual, unless they have been heard.

Published in Daily Times, October 20^th 2017.