Jun 12 2007 Marcus Simpson
The Pakistani Government intends to empower the country's central bank to obtain any information related to the transactions of banking and financial institutions, according to media reports. The country's Finance Bill 2007, which has gone before parliament, contains various provisions intended to upgrade existing anti-money laundering legislation and anti-terrorist financing legislation. Much of these are similar to legislation already enacted in other jurisdictions, particularly legislation that concerns the anti-money laundering requirements of countries' regulated sectors.
Under Section 93E of the bill, banking and financial institutions would be bound to pass on information about suspicious transactions to the central bank, along with information about the relevant client, on a confidential basis. Section 93E, which consists of nine subsections, would, if the bill is passed, be placed after Section 93D of Ordinance LVII of 1962.
Tipping off, whistle-blowing and freezing of assets
The bill reportedly also includes provisions for a maximum five-year jail term and a Rs100,000 ($1,650) fine for employees of banking and financial institutions if they are found guilty of "tipping off". It also includes provisions to protect any employee working for a financial institution if the worker chooses to make a "whistle-blowing" disclosure to the central bank.
The central bank may send any relevant information to the country's law enforcement agencies if it has reasonable grounds for suspicion that any person or company is involved in laundering or financing terrorism. The central bank may, after investigating, impose an asset freeze on any account under suspicion for a period of up to 130 days while an accompanying investigation continues.
