MAINSTREAMING ANTI MONEY LAUNDERING LAW IN PAKISTAN

International Journal For Multidisciplinary Research, 2023

The Prevention of Money Laundering Act, 2002 (PMLA) stands as a pivotal legislative tool in India, designed to combat money laundering and allied financial crimes, having a fundamental objective to thwart money laundering and facilitate the confiscation of property derived from or implicated in money laundering. Money laundering, as per the act, is expansively defined to encompass any process or activity attempting to legitimize illegally obtained proceeds, such as those arising from criminal activities. The act criminalizes money laundering activities, imposing stringent penalties that include imprisonment and fines for individuals found guilty of such offenses. Enforcement of the PMLA is orchestrated by various authorities, with the Enforcement Directorate (ED) at the forefront. The ED is entrusted with investigating and prosecuting offenses under the act. Embarking on an exploration of the intricate domain outlined by the Prevention of Money Laundering Act (PMLA) leads us to a realm where the intersections of financial regulations, criminal justice principles, and ethical considerations converge. By examining a series of pertinent adjudications related to the PMLA, we enter a reservoir of legal knowledge that significantly shapes the understanding and application of this crucial legislation. These legal determinations not only clarify the intricacies surrounding money laundering and its consequences but also offer invaluable guidance for legal practitioners, scholars, and policymakers striving to strike a balance between prosecuting financial offenses and safeguarding individual liberties. Within this compilation, we engage in an intellectual journey, mapping the continually evolving terrain of PMLA legal interpretations and presenting a comprehensive perspective on its development and significance within the framework of precedent law in the pursuit of justice. While serving as a significant tool in the battle against money laundering, the PMLA has faced criticisms, particularly concerning certain provisions such as the broad definition of "proceeds of crime", about the burden of proof placed on the accused, usual overreach, bail provisions etc. which become issues for critical analysis specially in preview of latest judgements of Hon. Supreme Court of India. Pending the review of the controversial judgment in 2022, specifically in the cases of Vijay Madanlal Choudhary v. Union of India, the Directorate of Enforcement (ED) seems to have gained significant momentum. The

Zenodo (CERN European Organization for Nuclear Research), 2022

Due Process of Law, Civil Forfeiture, Country of Law, Follow the Money It is an injustice if a person who has actually received benefits from the Money Laundering Crimes but cannot be processed because the original criminal act cannot be proven, this is the reason the Constitutional Court rejected Akil Mochtar's application to test Article 69 of Law Number 08 of 2010 concerning the Prevention and Eradication of Money Laundering Crimes. Is this reason enough to deprive a person of their freedom and property guaranteed in our Constitution of the 1945 Constitution, especially since there is an expert opinion that states Article 69 violates the principle of Due Proces of Law which is partly adopted in the Criminal Procedure Code because it is an embodiment of the concept of the State of Law (Rechtstaat) such as the principle of presumption of innocence, the principle of non-self-incrimination and the principle of legality. In the definition of an asset forfeiture mechanism, Article 69 is a civil forfeiture of assets processed through criminal justice. The recent development of the Money Laundering Act has been believed by law enforcement to be a stand-alone criminal act. Civil forfeiture who should have pursued his property according to the principle of follow the money turned into also chasing the culprit. So, there are cases where the original perpetrator of the crime was never proven but who helped it is going to jail even though they did not enjoy the money. In fact, there are also cases where the charges are purely violations of the Money Laundering Article without any original crime. In the midst of shifting paradigms from retributive justice to restorative justice, it seems that article 69 is increasingly looming as an anomaly in the concept of the State of Law that we have adopted in the 1945 Constitution.

2012

The thesis examines the intricacies of the global AML/CFT framework focusing largely on the three jurisdictions of United Kingdom, Uganda and South Africa. These jurisdictions were selected to test the hypothetical model on which this study was undertaken. While appreciating the importance for states to embrace global prohibition regimes to deal with overlapping interstate issues such as money laundering, these regimes often tend to overlook practical realities in member countries they are implemented. Since the global AML framework is implemented through the compliance of individual states, its efficacy would depend on the propensity of individual states to harness it. There is anecdotal evidence to corroborate the thesis that the current global AML/CFT framework is not compatible with the regulatory environment across the majority of LDCs. Thus, this presupposes that it cannot be applicable globally. LDCs are saddled by general systemic failure, lack of economic and social infrast...

BiLD Law Journal 4(2), 2019

Malaysia has proactively introduced a legal framework for combating terrorism financing within its shores in a phenomenal response to the global war against terrorism. Against this backdrop, this paper explores the provisions relating to antiterrorism financing in the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (AMLATFA) plus the recent amendment made to the Act in 2014, as well as the Penal Code of Malaysia. The significance of this study is seen in exposing the recent development on the Anti-Terrorism Financing Laws in Malaysia particularly with respect to the recent amendment made to the Act in 2014. While this study focuses on Anti-Terrorism Laws in Malaysia, AMLATFA forms the crux of the discussion. The paper concludes that Malaysia is keeping up with the global development on Anti-Terrorism Financing laws and this helps it maintain good image in the global world as a country that is ready to combat terrorism generally and terrorism financing specifically.

University of California Irvine Journal of International, Transnational, and Comparative Law, 2019

This Article enquires into the case of one of the most comprehensive, far-reaching, most deeply penetrating, and most punitive of TLOs: antimoney laundering. Drawing on an intensive study at a moment when its governing norms and methodologies of implementation were undergoing revision and expansion, as well as on observation and participation in AML/CFT activities over three decades, the Article brings rich empirical evidence to bear on two theoretical issues. First, despite its seemingly successful institutionalization, the AML TLO exhibits many deficiencies and imposes extensive costs on the private and public sectors, and harms upon the public. Why doesn't it fail? Second, the pervasiveness and penetration of the AML TLO indicates it may constitute a particular species of "disciplinary" TLOs. To address these issues, the Article, first, briefly sketches the thirty-year development and workings of the AML TLO; second, considers its benefits, costs, deficiencies and harms; third, confronts the puzzle of its persistence; and, fourth, concludes by arguing that the AML TLO may be distinctive insofar as (1) it has a foundational assumption of recalcitrant actors who must be monitored to reduce social harms which (2) legitimates a pervasive surveillance apparatus that is (3) yoked to punitive criminal institutions and practices which (4) lead to an elaborate repertoire of discipline that (5) has been multiplied to include states, financial institutions (e.g. banks), non-state collective actors such as charities, organized crime families, and individuals such as lawyers, accountants, and everyday participants in their myriads of transactions in an integrated global financial system. Those singular properties may in fact be shared substantially by other TLOs directed at crime. The site of criminal justice thereby encourages a more differentiated understanding of TLOs in 21 st century settings.

International Lawyer, 2009

Journal of Money Laundering Control, 2021

Purpose The efficient and strong financial system is considered as the backbone of the economy to function properly along with to attract international capital flow, investment and employment. But, on the other hand, weakness in the financial system will create negative impacts on the economy by sabotaging society’s trust in the financial system. In Pakistan, the key component of the financial sector is the banking sector including conventional and Islamic banking. Pakistan is among the pioneer of the Islamic banking sector, its share of 15.6% deposits in the total banking sector. This paper aims to analyze the effectiveness of anti-money laundering (AML) legislation in the Islamic banking sector of Pakistan. Design/methodology/approach The study is doctrinal legal research. The semi-structured interview approach for analysis have been adopted to analyze the materials used in the study to attain the objective. The survey approach was used in critically analyzing the effectiveness of...

International Journal of Economics and Management, 2016

Bank Negara Malaysia, as the central agency for the enforcement of the Anti-Money Laundering and Terrorist Financing Act (AMLATFA) 2001, has investigated many cases involving individuals and businesses, which have violated the Act. Although many anti-money laundering initiatives have been carried out by the regulators, the number of investigations and charges has risen over the years and some of the cases have been left unsettled. This study focuses on the examination of cases and chargers under AMLATFA 2001 by Bank Negara Malaysia. The data were collected from the Enforcement Action reports of Bank Negara Malaysia on the investigated cases charged under the AMLATFA. 80 cases were reported in the Bank Negara Malaysia website and were classified into industries, sources of cases, status of the cases, and the amount of money laundered. The findings provide an insight to the money laundering cases investigated by BNM and the seriousness of the money laundering issue in the country.