Anti-Money Laundering Law of Pakistan – An Overview

26 Pages Posted: 18 Dec 2013 Last revised: 28 Feb 2016

Faisal Daudpota

Advocate High Court

Date Written: December 16, 2013

Abstract

On 27 March 2010, the Pakistan's government promulgated the Anti-Money Laundering Act, 20101 (AMLA'10) in order to provide for prevention of money laundering and forfeiture of property derived from, or involved in, money laundering and for matters connected therewith or incidental thereto. On 10 December 2015, AMLA'10 was substantially revised through an amendment act.

AMLA'10 has specified the role of different government departments, banks, regulatory bodies and investigating agencies for checking movement of illegal funds through the financial system. AMLA ‘10 has also elaborated the procedure to check the suspicious accounts transactions through the banking system.

By enacting AMLA’10 the Government of Pakistan has fulfilled a major demand of the international community for introducing a financial system with legal backing for controlling the menace of money laundering.

The investigating and prosecuting agencies under AMLA’10 have been given powers of searches and seizures with minimal oversight of the Courts. It is likely that such powers will be scrutinized in the light of constitutional safeguards to fundamental rights of the citizens under Article 23 (right to hold private property) and Article 14 (right to privacy) as provided under Pakistan’s Constitution.

Likewise, the prosecuting agencies have also been given allowed concession in terms of reduction in the burden of proof as regards the offence of money laundering without having the to prove the predicate offence. This concession similarly it is possible to subject such concessions to the scrutiny of the Court in the light of constitutional guarantee of fair trial of the citizens under Article 10-A of Pakistan’s Constitution.

Keywords: Pakistan law; Criminal law; Proceeds of crime; Financial crime; Anti-money laundering law; Criminal prosecution

Suggested Citation

Daudpota, Faisal, Anti-Money Laundering Law of Pakistan – An Overview (December 16, 2013). Available at SSRN: https://ssrn.com/abstract=2368483 or http://dx.doi.org/10.2139/ssrn.2368483

Faisal Daudpota (Contact Author)

Advocate High Court ( email )

Karachi
Pakistan

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