ISLAMABAD, (MILLAT/APP): The authorities concerned have
finalized rules regarding freezing and seizure of assets of
proscribed organizations and persons on Schedule-IV of Anti-
Terrorism Act (ATA), 1997 and these are with Law & Justice Division
for vetting.
The government had constituted a Prime Minister’s Sub-
Committee on Choking Financing for Terrorists and Terrorist
Organizations under National Action Plan (NAP). Numerous actions
have been taken by Federal, Provincial Governments and State Bank of
Pakistan (SBP) under recommendations of this committee.
Highlighting the steps taken by government under NAP for
obstructing financing for terrorist organizations in the country so
far, sources at Interior and Narcotics Control Division on Wednesday
said under ATA 1997, designated/proscribed entities and individuals
are prohibited from opening of bank accounts and /or availing any
facility from financial institutions in Pakistan.
Accordingly, the sources said banks have reported freezing of
4461 bank accounts, amounting to around Rs. 400 million, pertaining
to persons on 4th Schedule of ATA, 1997.
The other step was strengthening of implementation of ATA
provisions relating to Terror Financing (TF) through capacity
building, enforcement actions and frequent use of proscription of
terrorist organizations.
Financial Monitoring Unit (FMU) is arranging capacity building
programmes in coordination with national and international
stakeholders. The programmes are meant to train Law Enforcement
Agencies (LEAs), regulators, federal and provincial police for
investigating the TF cases.
The sources said SBP has also arranged capacity building
programme for LEAs in Khyber Pakhtunkhwa (KPK) and Quetta on matters
related to foreign exchange, Anti Money Laundering (AML), banking
policies & inspections in which 65 officers from various LEAs have
participated.
Moreover, with regard to use of illegal/ informal remitters
(Hawala /Hundi) for criminal activities including TF, Federal
Investigation Agency (FIA) has been taking action against
Hawala/Hundi.Action is taken on Suspicious Transaction Reports
(STR) as well, AML Act 2010 is strictly implemented, notification of
additional predicate offences has also been issued, whereby relevant
sections of Foreign Exchange Regulations Act 1947 dealing with
Halawa business have been included in Schedule of AML Act 2010, as
predicate offences.
The sources said FMU has been disseminating financial
intelligence reports relating to Hawala/Hundi operators, to FIA for
further inquiry and added FMU has disseminated financial
intelligence reports to FIA on terrorism related suspicion, which
are under inquiry.
Similarly, the sources said with regard to initiatives for an
effective law to regulate and monitor activities of
NPOs/NGOs/Charities, National Counter Terrorism Authority (NACTA)
has constituted a Task Force for drafting a comprehensive
model law for orderly operations and effective monitoring of NGOs
and charities.
In October 2016, Ministry of Interior promulgated International
NGOs Policy and started online registration. So far, 51 NGOs have
been registered/approved.
Security Exchange Commission of Pakistan (SECP) has also taken
considerable steps for re-registration of NPOs/NGOs under section 42
of companies’ ordinance 1984. Out of 793 registered NGOs, 501
required renewal of licenses. The licenses of 162 NGOs were renewed
while licenses of 240 were revoked.
The cases of revoked NGOs were referred to SBP for freezing of
their accounts.
Regarding implementation of regime for cross border movement
of currencies, SBP in light of Financial Action Task Force (FATF)
recommendations regarding declaration of money by in-bound
passengers also issued money declaration from (CD-I).
Finance Division in consultation with SBP has issued
instructions to Federal Bureau of Revenue (FBR) and Civil Aviation
Authority (CAA) for effective implementation of currency
declaration for incoming passengers, the limit of which is
US$ 10,000/person.
Suspicious Transaction Reports (STRs) having connection with
smuggling and Afghan Transit trade business are being disseminated
to FBR for further inquiry, the sources said and added threshold of
reporting of cash-based transactions reduced gradually. Ministry of
Finance through notification also lowered Currency Transaction
Report (CTR) reporting threshold from Rs. 2.5 million to Rs. 2
million.
The sources said under Regulatory Controls, banks cannot
provide any banking services to proscribed entities/persons or to
those who are known to be associated with them.