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ACT NO. XXIII OF 2015

ANTI-MONEY LAUNDERING (AMENDMENT) 

ACT, 2015

An Act to amend the Anti-Money Laundering, Act, 2010

[Gazette of Pakistan, Extraordinary, Part-I, 16th December, 2015]

No. F. 22(36)/2015-Legis., dated 15.12.2015.–The following Act of Majlis-e-Shoora (Parliament) received the assent of the President on the 10th December, 2015 and is hereby published for general information:–

WHEREAS it is expedient to amend the Anti-Money Laundering Act, 2010 (VII of 2010) for the purposes hereinafter appearing;

It is hereby enacted as follows:–

1.  Short title and commencement.–(1) This Act may be called the Anti-Money Laundering (Amendment) Act, 2015.

(2)  It shall come into force at once.

2.  Amendment of Section 2, Act VII of 2010.–In the Anti-Money Laundering Act, 2010 (VII of 2010), hereinafter referred to as the said Act, in Section 2,–

(a)      clause (g) shall be omitted;

(b)      in clause (j), for the words “a predicate offence” the words “an offence under this Act” shall be substituted;

(c)      after clause (r), the following new clause shall be inserted, namely:–

“(ra)”property involved in money laundering” means proceeds of crime, property derived or obtained directly or indirectly from the offence of money laundering and property used or intended to be used in commission of the offence of money laundering, a predicate offence or a foreign serious offence;”; and

(d)      in clause (y) for the words “Transactions” the word “Transaction” shall be substituted.

3.  Amendment of Section 3, Act VII of 2010.–In the said Act, in Section 3, after clause (d),–

(a)      for the word “Explanation” the expression “Explanation-1” shall be substituted; and

(b)      after the Explanation-I, substituted as aforesaid, the following new explanation shall be added, namely:–

          “Explanation-II.–For the purposes of proving an offence under this section, the conviction of an accused for the respective predicate offence shall not be required.”.

4.  Amendment of Section 4, Act VII of 2010.–In the said Act, in Section 4, for the words “the money laundering”, the words “money laundering or property of corresponding value” shall be substituted.

5.  Amendment of Section 5, Act VII of 2010.–In the said Act, in Section 5,–

(a)  in sub-section (1), clause (g) shall be omitted;

(b)      in sub-section (3),–

(i)       after the word “shall”, occurring for the first time, the words “hold its meetings not less than twice a year and shall be responsible to” shall be inserted;

(ii)      for clause (a), the following shall be substituted, namely:–

“(a)     develop, review and oversee the implementation of national strategy to fight money laundering and financing of terrorism;”; and

(iii)     clauses (g), (h), (i) and (j) shall be omitted;

(c)      after sub-section (3), amended as aforesaid, the following new sub-sections shall be inserted, namely:

          “(3-A) The National Executive Committee may constitute one or more sub-committees to perform such functions as it may deem fit.

          (3-B) The National Executive Committee may delegate or assign its functions to the General Committee or a sub-committee, if need be.”;

(d)      in sub-section (4),–

(i)       after clause (d), the following new clauses shall be inserted, namely:–

“(da)   Chairman, National                Member

Accountability Bureau

(db)    Chairman, Federal Board       Member

of Revenue

(dc)    Director-General, Federal      Member

Investigation Agency

(dd)    Director-General, Anti            Member

Narcotics Force”;

(ii)      in clause (e), for the word “Governor” the words “Deputy Governor” shall be substituted;

(iii)     in clause (f), for the word “Chairman” the word “Commissioner” shall be substituted; and

(iv)     clause (g) shall be omitted;

(e)      in sub-section (7),–

(i)       in clause (d), the word “and”, occurring at the end, shall be omitted;

(ii)      after clause (d), amended as aforesaid, the following new clauses shall be inserted, namely:–

“(da)   approve FMU’s budgetary proposals for achieving the objects of this Act;

(db)    approve FMU’s staffing requirements, pay, allowances, privileges and compensation packages and other matters incidental thereto; and”; and

(iii)     in clause (e), after the word “assigned” the words “or delegated” shall be inserted; and

(f)       after sub-section (7), amended as aforesaid” the following new sub-section shall be added, namely:–

“(8)     The General Committee may constitute one or more sub-committees to perform such functions as it may deem fit.”.

6.  Amendment of Section 6, Act VII of 2010.—In the said Act, in Section 6,–

(a)      in sub-section (4),–

(i)       in clause (a) for the word “Transactions” the word “Transaction” shall be substituted;

(ii)      in clause (b), the brackets and words “(with the exception of income tax information)” shall be omitted;

(iii)     for clause (c), the following shall be substituted, namely:–

“(c)     to disseminate on a confidential basis, after analyzing the Suspicious Transaction Reports, and CTRs and other record, necessary information or material to the concerned investigating or prosecuting agencies for enquiry or other action under this Act or any other applicable law;”;

(iv)     for clause (e), the following shall be substituted, namely:–

“(e)     to co-operate with financial intelligence units in other countries and to make reciprocal arrangements after due administrative process to share, request and receive information relating to money laundering and financing of terrorism;”;

(v)      for clause (g), the following shall be substituted, namely:–

“(g)     to submit to the General Committee and the National Executive Committee the reports including an annual report containing overall analysis of the Suspicious Transaction Reports and CTRs, statistics concerning the investigations and prosecutions conducted in relation to the offences of money laundering and financing of terrorism in Pakistan and recommendations on countermeasures to combat money laundering and financing of terrorism. In this behalf, FMU may call periodic reports from the investigating and prosecuting agencies in such manner as may be specified by FMU ;” ;

(vi)     in clause (i), for the words, “in the areas of a comma and the word “, including” shall be substituted; and

(vii)    in clause (j), after the word “to” the words “enter into arrangements with domestic agencies and authorities or” shall be inserted; and

(b)      in sub-section (6),–

(i)       for the words “any property is” the words “a property is the property” shall be substituted; and

(ii)      the words “or financing of terrorism” shall be omitted.

7.  Amendment of Section 7, Act VII of 2010.–In the said Act, in Section 7,–

(a)      in the marginal heading, the words “the financial institutions or” shall be omitted;

(b)      for sub-section (1), the following shall be substituted, namely:–

          “(1)  Every reporting entity shall file with FMU, to the extent and in the manner prescribed by the FMU, Report of Suspicious Transaction conducted or attempted by, at or through such reporting entity, if it knows, suspects or has reason to suspect that the transaction or a pattern of transactions of which the transaction is a part,–

(a)      involves funds derived from illegal activities or is intended or conducted in order to hide or disguise proceeds of crime;

(b)      is designed to evade any requirements of this section;

(c)      has no apparent lawful purpose after examining the available facts, including the background and possible purpose of the transaction; or

(d)      involves financing of terrorism including funds collected, provided, used or meant for, or otherwise inked or related to, terrorism, terrorist acts or organizations and individuals concerned with terrorism:

                   Provided that Suspicious Transaction Report shall be filed by the reporting entity with the FMU immediately, but not later than seven working days after forming that suspicion.”;

(c)      in sub-section (2),–

(i)       the word “other” shall be omitted;

(ii)      for the word “or”, occurring for the first time, a comma shall be substituted; and

(iii)     after the word “authority”, occurring for the first time, the words and commas, domestic or foreign,” shall be inserted;

(d)      in sub-section (3), the words “financial institutions or” shall be omitted; and

(e)      in sub-Sections (4) and (6), for the word “Transactions” the word “Transaction” shall be substituted; and

(f)       after sub-section (6), amended as aforesaid, the following new sub-section shall be inserted, namely:–

          “(7) Every reporting entity shall, in accordance with the regulations issued by relevant regulatory authority of that reporting entity, conduct customer due diligence and maintain record of transactions, account files and documents obtained through such diligence.”.

8.  Amendment of Section 8, Act VII of 2010.–In the said Act, in Section 8,–

(a)      in sub-section (1),–

(i)       for the word “The”, occurring for the first time, the word “An” shall be substituted;

(ii)      after the word “investigating”, occurring for the second time, the word “or prosecuting” shall be inserted;

(iii)     after the word “attach” the letter “a” shall be inserted; and

(iv)     for the words “proceeds of crime or” the words “the property” shall be substituted;

(b)      in sub-section (2),–

(i)       for the comma and words “, alongwith the material in his possession” the words “and the report” shall be substituted; and

(ii)      for the commas and words “, in the manner as may be prescribed, and the concerned investigating agency, shall keep such order and material for such period as may be prescribed” shall be omitted; and

(c)      in sub-section (5), for the commas and words “,within a period of thirty days from such attachment, file a complaint stating the facts of such attachment before the Court” the words “submit to the Court monthly report on the progress made in the investigation” shall be substituted.

9.  Amendment of Section 9, Act VII of 2010.–In the said Act, in Section 9,–

(a)      in sub-section (2),—

(i)       after the word “are” the word “properties” shall be inserted; and

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