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ANTI-MONEY LAUNDERING ACT, 2010

ACT No. VII OF 2010

[27]

An Act to provide for prevention of money laundering.

WHEREAS, it is expedient to provide for prevention of money laundering combating financing of terrorism and forfeiture of property derived from, or involved in, money laundering or financing of terrorism and for matters connected therewith or incidental thereto;

It is hereby enacted as follows:___

1. Short title, extent and commencement.-(1) This Act may be called the Anti-Money Laundering Act, 2010.

(2) It extends to the whole of Pakistan.

(3) It shall come into force at once.

2. Definitions. In this Act, unless there is anything repugnant in the subject or context,___

(a) "Attachment" means prohibition of transfer, conversion, disposition or movement of property by an order issued under section 8;

(b) "Company" means any body corporate and includes a firm or other association of individuals;

(c) "CTR" means report on currency transactions exceeding such amount as may be specified by the National Executive Committee by Notification in the official Gazette;

(d) "Court" means the Court specified under section 20:

(e) "Director General" means the Director General of the FMU appointed under section 6;

(f) "Financial institution" includes any institution carrying on any one or more of the following activities, namely:

(i) Acceptance of deposits and other repayable funds from the public;

(ii) Lending in whatsoever form;

(iii) Financial leasing;

(iv) Money or value transfer;

 (v) issuing and managing means of payments including but not limited to credit and debit cards, cheques, travelers cheques, money orders, bank drafts and electronic money;

 

(vi) Financial guarantees and commitments;

(vii) Trading in___

(a) Money market instruments;

(b) Foreign exchange;

(c) Exchange, interest rate and index instruments;

(d) Transferable securities; and

(e) Commodity futures trading;

(viii) Participation in shares issues and the provision of services related to such issues;

(ix) Individual and collective portfolio management;

(x) Safekeeping and administration of cash or liquid securities on behalf of other persons;

(xi) Investing, administering or managing funds or money on behalf of other. persons;

(xii) Insurance business transactions;

(xiii) Money and currency changing; and

(xiv) Carrying out business as intermediary.

1* * * * * * *

(h) "FMU" means the Financial Monitoring Unit established under section 6;___

(i) "Foreign serious offence" means an offence___

(i) against the law of a foreign State stated in a certificate issued by, or on behalf of, the government of that foreign State; and

(ii) which, had it occurred in Pakistan, would have constituted a predicate offence;

 

1Omitted by Act XXIII of 2015, s. 2.


 (j) "investigating or prosecuting agency" means the National Accountability Bureau (NAB), Federal Investigation Agency (FIA), Anti-Narcotics Force (ANF) or any other law enforcement agency as may be notified by the Federal Government for the investigation or prosecution of1[an offence under this Act];

 

(k) "Investigating Officer" means the officer nominated or appointed under section 24;

(l) "National Executive Committee" means the National Executive Committee constituted under section 5;

(m) "non-financial , businesses and professions" means real estate agents, jewellers, dealers in precious metals and precious stones, lawyers, notaries and other legal professionals, accountants, trust and company service providers and such other non-financial businesses and professions as may be notified by the Federal Government;

(n) "Offence of money laundering" has the meaning as defined in section 3;

(o) "Person" means an individual, a firm, an entity, an association or a body of individuals, whether incorporated or not, a company and every other juridical person;

(p) "Prescribed" means prescribed by rules made under this Act;

(q) "Proceeds of crime" means any property derived or obtained directly or indirectly by any person from the commission of a predicate offence or a foreign serious offence;

(r) "property" means property or assets of any description, whether corporeal or incorporeal, movable or immovable, tangible or intangible, and includes deeds and instruments evidencing title to, or interest in, such property or assets, including cash and monetary instruments, wherever located;

1["(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;";

(s) "Predicate offence" means an offence specified in the Schedule to this Act;

(t)"Record" includes the records maintained in the form of books or stored in a computer or any electronic device, or such other form as may be prescribed;

(u) "Reporting entity" means an entity specified in clause (f) or clause (m) and includes any other entity designated as such by Federal Government by notification in the official Gazette;

(v) "SBP" means State Bank of Pakistan established under the State Bank of Pakistan Act, 1956 (XXXIII of 1956);

 

1Subs. and ins. by Act XXIII of 2015, s. 2.


 

(w) "Schedule" means schedule to this Act;

(x) "SECP" means Securities and Exchange Commission of Pakistan established under the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997);

(y) "Suspicious 1[Transaction] Report" means the report on suspicious transactions specified under section 7; and

(z) "Transfer" means sale, lease, purchase, mortgage, pledge, gift, loan, or any other form of transfer of right, title, possession or lien.

3. Offence of money laundering. A person shall be guilty of offence of money laundering, if the person:___

(a) acquires, converts, possesses, uses or transfers property, knowing or having reason to believe that such property is proceeds of crime;

(b) conceals or disguises the true nature, origin, location, disposition, movement or ownership of property, knowing or having reason to believe that such property is proceeds of crime;

(c) holds or possesses on behalf of any other person any property knowing or having reason to believe that such property is proceeds of crime; or

(d) participates in, associates, conspires to commit, attempts to commit, aids, abets, facilitates, or counsels the commission of the acts specified in clauses (a), (b) and (c).

1[Explanation-I]The knowledge, intent or purpose required as an element of an offence set forth in this section may be inferred from factual circumstances in accordance with the Qanun-e-Shahadat, 1984 (P.O.10 of 1984).

1[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. Punishment for money laundering. Whoever commits the offence of 1[money laundering or property of corresponding value] shall be punishable with rigorous imprisonment for a term which shall not be less than one year but may extend to ten years and shall also be liable to fine which may extend to one million rupees and shall also be liable to forfeiture of property involved in the money laundering:

Provided that the aforesaid fine may extend to five million rupees in case of a company and every director, officer or employee of the company found guilty under this section shall also be punishable under this section.

5. National Executive Committee to combat money laundering.__(1) Within thirty days of the commencement of this Act the Federal Government shall, by notification in the official Gazette, constitute a committee to be known as the National Executive Committee which shall consist of the following members, namely:___

 

1Subs. and added by Act XXIII of 2015, s. 2-4.


(a) Minister for Finance or Advisor to the Prime Minister on Finance/ Concerned Minister

Chairman

 

(b) Minister for Foreign Affairs,

Member

 

(c) Minister for Law and Justice

Member

 

(d) Minister for Interior

Member

 

(e) Governor SBP

Member

 

(f) Chairman SECP

Member

 

1* * * * * * *

 

(h) Director General

Member

 

(i) any other member to be nominated by the Federal Government.

(2) The Director General, FMU shall also act as Secretary of the National Executive Committee.

(3) The National Executive Committee shall 1[hold its meetings not less than twice a year and shall be responsible to]

1["(a) develop, review and oversee the implementation of national strategy to fight money laundering and financing of terrorism;"]

(b) determine offences existing in Pakistan that may be considered to be predicate offences for the purposes of this Act;

(c) provide guidance and sanction in framing of rules and regulations under this Act;

(d) make recommendations to the Federal Government for effective implementation of this Act and framing of national policy to combat money laundering and financing of terrorism;

(e) issue necessary directions to the agencies involved in the implementation and administration of this Act;

(f) discuss any other issue of national importance relating to money laundering and financing of terrorism; and

 

1Omitted, ins. and subs. by Act XXIII of 2015, s. 5.


 

1* * * * * * *

(k) undertake and perform such other functions as may be assigned to it by the Federal Government, relating to money laundering and financing of terrorism.

1["(3A) The National Executive Committee may constitute one or more sub-committees to perform such functions as it may deem fit.

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

(4) The National Executive Committee shall be assisted by a General Committee to be composed of

(a) Secretary Finance Chairman

(b) Secretary Interior Member

(c) Secretary Foreign Affairs Member

(d) Secretary Law Member

1["(da) Chairman, National Accountability Burea Member

(db) Chairman, Federal Board of Revenue Member

(dc) Director-General, Federal Investigation Agency Member

(dd) Director-General, Anti Narcotics Force Member";]

(e) 1[Deputy Governor] SBP Member

(f) 1[Commissioner] SECP Member

1* * * * * * *

(h) Director General Member

(i) Any other member to be nominated by the Federal Government.

(5) The Director-General, FMU shall also act as Secretary of the 'General Committee.

(6) The General Committee may invite any person to participate in the meeting as it deems necessary.

(7) The General Committee shall, inter alia

(a) take measures as necessary for development and review of performance of investigating agencies, FMU and the financial institutions and non-

 

1Omitted, ins. and subs. by Act XXIII of 2015, s. 5.


 

 

financial businesses and professions, relating to anti-money laundering and combating financing of terrorism;

(b) review training programs for Government, financial institutions, non-financial businesses and professions and other persons, relating to anti-money laundering and combating financing of terrorism;

(c) provide necessary assistance to the National Executive Committee in carrying out its functions and duties under this Act;

(d) discuss any other issue of national importance relating to money laundering and financing of terrorism; 1[* * *]

1["(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";]

(e) undertake and perform such other functions as assigned 1[or delegated] to it by the National Executive Committee.

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

6. Financial Monitoring Unit. (1) The Federal Government shall, by notification in the official Gazette, establish a Financial Monitoring Unit which shall be housed in SBP or at any other place in Pakistan.

(2) The FMU shall have independent decision making authority on day-to-day matters coming within its areas of responsibility.

(3) A Director General who shall be a financial sector specialist shall be appointed by the Federal Government in consultation with SBP to head FMU and exercise all powers and functions of the FMU subject to the administrative oversight of the General Committee.

(4) The FMU shall exercise the following powers and perform the following functions, namely:

(a) to receive Suspicious 1[Transaction] Reports and CTRs from financial institutions and such non-financial businesses and professions as may be necessary to accomplish the objects of this Act;

(b) to analyse the Suspicious Transaction Reports and CTRs and in that respect the FMU may call for record and information from any agency or person in Pakistan 1[* * *] related to the transaction in question. All such agencies or persons shall be required to promptly provide the requested information;

1["(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;"]

(d) to create and maintain a data base of all Suspicious Transaction Reports and CTRs, related information and such other materials as the Director General determines are relevant to the work of the FMU and in that respect, the FMU is authorized to establish necessary analytic software and

 

1Omitted, ins., added and subs. by Act XXIII of 2015, s. 5-6.


 

computer equipment to effectively search the database, sort and retrieve information and perform real time linkages with databases of other agencies both in and outside Pakistan as may be required from time to time;

1["(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;";]

(f) to represent Pakistan at all international and regional organizations and groupings of financial intelligence units and other international groups and forums which address the offence of money laundering, financing of terrorism and other related matters;

1["(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 ;" ];

(h) to frame regulations in consultation with SBP and SECP for ensuring receipt of Suspicious Transaction Reports and CTRs from the financial institutions and non-financial businesses and professions with the approval of the National Executive Committee;

(i) to recommend to the regulatory authorities of reporting entities to issue regulations as considered necessary in the context of combating money laundering and financing of terrorism 1[,including] customer due diligence and ancillary record-keeping;

(j) to  1[enter into arrangements with domestic agencies and authorities or] engage a financial institution or an intermediary or such other non-financial businesses and professions or any of its officers as may be necessary for facilitating implementation of the provisions of this Act, the rules or regulations made hereunder; and

(k) to perform all such functions and exercise all such powers as are necessary for, or ancillary to, the attainment of the objects of this Act.

(5) On considering the suspicious transaction report or CTR, the FMU may, if deems necessary, convey matters involving regulatory or administrative action to the concerned regulatory or administrative body for appropriate action.

(6) Subject to the regulations sanctioned by the National Executive Committee in this behalf, the Director General may, if there appear to be reasonable grounds to believe that 1[a property is the property] involved in money laundering 1[* * *], order freezing of such property, for a maximum period of fifteen days, in any manner that he may deem fit in the circumstances.

 

1Subs., ins. and omitted by Act XXIII of 2015, s. 6.


 

 

7. Procedure and manner of furnishing information by 1[* * *] reporting entities.1[(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 linked 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.";]

(2) Any 1[* * *] government agency, autonomous body 1[,] regulatory authority 1[domestic or foreign] may share intelligence or report their suspicions within the meaning of suspicious transaction report or CTR to FMU in normal course of their business and the protection provided under section 12 shall be available to such agency, body or authority.

(3) All CTRs shall, to the extent and in the manner prescribed by the FMU, be filed by the 1[* * *] reporting entities with the FMU immediately, but not later than seven working days, after the respective currency transaction.

(4) Every reporting entity shall keep and maintain all record related to Suspicious 1[Transaction] Reports and CTRs filed by it for a period of at least five years after reporting of transaction under sub-sections (1), (2) and (3).

(5) The provisions of this section shall have effect notwithstanding any obligation as to secrecy or other restriction on the disclosure of information imposed by any other law or written document.

(6) Notwithstanding anything contained in any other law for the time being in force, any Suspicious 1[Transaction] Reports required to be submitted by any person or entity to any investigating or prosecuting agency shall, on the commencement of this Act, be solely and exclusively submitted to FMU to the exclusion of all others.

1[(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. Attachment of property involved in money laundering.-(1) 1[an] Investigating Officer may, on the basis of the report in his possession received from the concerned investigating 1[or prosecuting] agency, by order in writing, with prior permission of the Court, provisionally attach 1[a] property, which he reasonably believes to be 1[the property] involved in money laundering for a period not exceeding ninety days from the date of the order.

 

1Omitted, subs., and ins. by Act XXIII of 2015, s. 7-8.


 

 

(2) The Investigating Officer shall within forty-eight hours immediately after attachment under sub-section (1), forward a copy of the order, 1[and the report] referred to in that subsection, to the head of the concerned investigating agency, in a sealed envelope 1[* * *].

(3) Every order of attachment made under sub-section (1) shall cease to have effect after the expiry of the period specified in that sub-section or on the date of the finding made under sub-section (2) of section 9 whichever is earlier.

(4) Nothing in this section shall prevent the person interested in the enjoyment of the immovable property attached under sub-section (1) from such enjoyment.

Explanation.For the purposes of this subsection, "person interested", in relation to any immovable property, includes all persons claiming or entitled to claim any interest in the property.

(5) The Investigating Officer who provisionally attaches any property under subsection (1) shall, 1[submit to the Court monthly report on the progress made in the investigation.]

9. Investigation.(1) The Investigating Officer shall, not later than seven days from the date of order of attachment made under sub-section (1) of section 8 or, seizure of property under section 14 or section 15, serve a notice of not less than thirty days on the person concerned. The notice shall call upon such person to indicate the sources of his income, earning or assets, out of which or by means of which he has acquired the property attached under sub-section (1) of section 8, or, seized under section 14 or section 15, the evidence on which he relies and other relevant information and particulars, and to show cause whyall or any of such properties should not be declared to be the properties involved in money laundering and forfeited to the Federal Government:

Provided that where a notice under this subsection specifies any property as being held by a person on behalf of any other person, a copy of such notice shall also be served upon such other person:

Provided further that where such property is held jointly by more than one person, such notice shall be served upon all persons holding such property

(2) The Investigating Officer shall, after,

(a) considering the reply, if any, to the notice issued under subsection (1);

(b) hearing the aggrieved person; and

(c) taking into account all relevant materials placed on record before him;

record a finding whether all or any other properties referred to in the notice issued under sub-section (1) are 1[properties] involved in money laundering:

Provided that if the property is claimed by a person, other than a person to whom the notice had been issued, such person shall also be given an opportunity of being heard to prove

 

1Subs., omitted and ins. by Act XXIII of 2015, s. 9.


 

 

that the property is not 1[a property] involved in money laundering.

(3) Where the Investigating Officer on the basis of report received from the concerned investigating agency determines under subsection (2) that 1[a] property is 1[the property] involved in money laundering, he shall, apply to the Court for an order confirming the attachment of the property made under subsection (1) of section 8 or retention of property or record seized under section 14 or section 15.

1*         *             *           *             *              *               *

1[(3A) The Court may, after giving opportunity of hearing to the persons concerned with the property attached under sub-section (1) of section 8 or retained or seized under section 14 or section 15, pass an order confirming the attachment, retention, seizure or, as the case may be, release of the property. The attachment or retention or seizure of the property shall-

(a) continue during the pendency of the proceedings relating to any predicate offence or money laundering before a Court; and

(b) become final if it is proved in the Court that the property is the property involved in money laundering. ";]

(4) Where the provisional order of attachment made under subsection (1) of section 8 has been confirmed under subsection (3), 1[A] the Investigating Officer shall forthwith take possession of the attached property:

Provided that where the property seized is perishable in nature or subject to speedy and natural decay, or when the expense of keeping it in custody is likely to exceed its value, the Court may, on the application of the Investigating Officer, order immediate sale of the property in any manner deemed appropriate in the circumstances.

(5) Where on conclusion of a trial for any predicate offence or money laundering, the person concerned is acquitted, the attachment of the property or retention 1[or seizure of the] property or record under sub-section (3), 1[A] and net income, if any, shall cease to have effect.

(6) Where the attachment of any property or retention 1[or seizure of the] property or record becomes final under clause (b) of subsection (3), 1[A] the Court shall 1[* * *] make an order for forfeiture of such property.

(7) After passing the order of forfeiture under sub-section (6) 1[* * *], the Court 1[shall] direct the release of all properties other than the properties involved in money laundering to the persons from whom such properties were seized.

10. Vesting of property in Federal Government.–Where an order of forfeiture has been made under subsection (6) of section 9 in respect of any property of a person, all the rights and title in such property shall vest absolutely in the Federal Government free from all encumbrances:

 

1Ins., subs. and omitted by Act XXIII of 2015, s. 9.


 

 

Provided that where the Court, after giving an opportunity of being heard to any other person interested in the property attached under section 8, or seized under section 14, is of the opinion that any encumbrance on the property or leasehold interest has been created with a view to defeat the provisions of this Act, it may, by order, declare such encumbrance or leasehold interest to be void and thereupon the aforesaid property shall vest in the Federal Government free from such encumbrances or leasehold interest:

Provided further that nothing in this section shall operate to discharge any person from any liability in respect of such encumbrances, which may be enforced 1[legally] against such person 1[* * *].

11. Management of forfeited properties.-(1) The Federal Government may, by order published in the official Gazette, appoint as many trustees and receivers as it thinks fit to perform the functions of an Administrator.

(2) The Administrator appointed under subsection (1) shall receive and manage the property in relation to which an order has been made under subsection (6) of section 9 in such manner and subject to such conditions as may be prescribed.

(3) The Administrator shall also take such measures, as the Federal Government may direct, to dispose of the property which is vested in the Federal Government under section 10:

Provided that, where the property seized is perishable in nature or subject to speedy and natural decay, or when the expense of keeping it in custody is likely to exceed its value, the Administrator may sell it at once after reasonable notice to the Federal Government.

12. No civil or criminal proceedings against banking companies, financial institutions, etc., in certain cases. Save as otherwise provided in section 7, the financial institutions, non-financial businesses and professions and their officers shall not be liable to any civil, criminal or disciplinary proceedings against them for furnishing information required under this Act or the rules and regulations made hereunder.

13. Power of Survey.-(1) Notwithstanding anything contained in any other provisions of this Act, where an Investigating Officer, on the basis of material in his possession, has reasons to believe that an offence of money laundering has been committed, he may, with the permission of the Court, enter any place,

(a) within the limits of the area assigned to him; or

(b) in respect of which he is authorized for the purposes of this section by such other authority who is assigned the area within which such place is situated,

at which any act constituting the commission of such offence is carried on, and may require any proprietor, employee or any other person who may at that time and place be attending in any manner to, or helping him in, such act so as to,

(i) afford him the necessary facility to inspect such record as he may require and which may be available at such place;

 

1Ins. and omitted by Act XXIII of 2015, s. 10.


 

 

(ii) afford him the necessary facility to check or verify the proceeds of crimes or any transaction related to proceeds of crimes which may be found therein; and

(iii) furnish such information as he may require as to any matter which may be useful for, or relevant to, any -proceedings under this Act.

Explanation.For the purpose of this subsection, a place, where an act which constitutes the commission of the offence is carried on, shall also include any other place, whether any activity is carried on therein or not, in which the person carrying on such activity states that any of his records or any part of his property relating to such act are or is kept.

(2) The Investigating Officer referred to in subsection (1), shall, after entering any place referred to in that subsection and within forty-eight hours immediately after completion of survey, forward a copy of the report on survey, 1[* * *], to the head of the concerned investigating 1[or prosecuting] agency in a sealed envelope 1[* * *]

(3) The Investigating Officer acting under this section may,

(a) place marks of identification on the records inspected by him and make or cause to be made extracts or copies therefrom,

(b) make an inventory of any property checked or verified by him, and

(c) record the statement of any person present in the place which may be useful for or relevant to any proceeding under this Act.

14. Search and seizure.-1[(1) Subject to sub-section (2), where the investigating officer, on the basis of information i~ his possession, has

reason to believe that any person-

(a) has committed any act which constitutes money laundering;

(b) is in possession of any property involved in money laundering; or

(c) is in possession of any record which may be useful for or relevant to proceedings under this Act, he may either himself, or authorize any officer subordinate to him to,-

(i) enter and search any building, place, vessel, vehicle or aircraft where he has reason to suspect that such record or properties are kept;

(ii) break open the lock of any door, box, locker, safe, almirah or other receptacles for exercising the powers conferred by clause (i) where the keys thereof are not available;

(iii) seize any such record or property found as a result of such search;

(iv) place marks of identification on such record or make, or cause to be made, extracts or copies therefrom;

(v) make a note of any inventory of such record or property; or

(vi) examine any person, who is found to be in possession or control of any such record or property, in respect of all matters relevant for the purposes of any investigation under this Act.";]

 

1Omitted, ins. and subs. by Act XXIII of 2015, s. 11-12.


 

 

(2) The powers to search under sub-section (1) shall be exercisable by the Investigating Officer with the prior permission of the Court. 1[:]

1[Provided that where immediate action is required, the powers of search and seizure shall be exercisable with prior permission of senior officer of the concerned investigating or prosecuting agency not below the rank of an officer of BS-20.”;]

(3) The Investigating Officer shall, within forty-eight hours immediately after search and seizure, forward a copy of the report on search and seizure1[* * *] to the head of the concerned investigating 1[or prosecuting] agency in a sealed envelope 1[* * *].

(4) Where the Investigating Officer, upon information obtained during survey under section 13, is satisfied that any evidence shall be or is likely to be concealed or tampered with, he may, for reasons to be recorded in writing, enter and search the building or place where such evidence is located and seize that evidence.

1* * * * * * *

15. Search of persons.-(1) If an Investigating Officer, has reason to believe (the reason for such belief to be recorded in writing) that any person has secreted about the person or anything under his possession, ownership or control, any record or 1[property] which may be useful for or relevant to any proceedings under this Act, he may 1[* * *] search that person and seize such record or property which may be useful for or relevant to any proceedings under this Act.

(2) The Investigating Officer shall, within forty-eight hours immediately after search and seizure, forward a copy of the report. on search and seizure,1[* * *] to the head of the concerned investigating 1[or prosecuting] agency in a sealed envelope 1[* * *]

1* * * * * * *

 

1Subs., ins., added and omitted by Act XXIII of 2015, s. 12-13.


 

 

(6) No female shall be searched by any one except a female.

(7) The Investigating Officer shall record the statement of the person searched under subsection (1) 1[* * *] in respect of the records or 1[property involved in money laundering and] found or seized in the course of the search.

1* * * * * * *

16. Power to arrest.-(1) If the Investigating Officer or any other officer of the agency referred to in subsection (2) of section 24 authorized in this behalf by the Federal Government by general or special order, has, on the basis of material in his possession, reason to believe (the reason for such belief to be recorded in writing) that any person has been guilty of an offence punishable under this Act, he may after obtaining warrant from the Court or the nearest Judicial Magistrate/arrest such person and shall, as soon as may be, inform him of the grounds for such arrest.

(2) The Investigating Officer or, any other officer, as the case may be, shall, immediately after arrest of such person under subsection (1) forward a copy of the order along with 1[his report] to the head of the concerned investigating 1[or prosecuting] agency in a sealed envelop 1[* * *].

(3) Every person arrested under sub-section (1) shall within twenty-four hours be taken to a judicial magistrate having jurisdiction:

Provided that the period of twenty-four hours shall exclude the time necessary for the journey from the place of arrest to the Magistrate's court.

17. Retention of property.-(1) Where any property has been seized under section 14 or section 15 and the Investigating Officer has, on the basis of material in his possession, reason to believe that such property is required to be retained for the purposes of investigation under section 9 such property may be retained for a period not exceeding ninety days from the time such property was seized:

Provided that the Investigating Officer shall duly inform the Court about any peculiar nature of the seized property and, where necessary, seek appropriate directions for its proper care during retention.

(2) The Investigating Officer, immediately after he has passed an order for retention of property for purposes of investigation under section 9, shall forward a copy of the order 1[* * *] to the head of the concerned investigating 1[or prosecuting] agency, in a sealed envelop, 1[* * *]

 

1Omitted, subs. and ins. by Act XXIII of 2015, s. 14-15.


 

 

(3) On the expiry of the period specified under sub-section (1), the property shall be returned to the person from whom such property was seized unless the Court permits retention of such property beyond the said period.

(4) The Court, before authorizing the retention of such property beyond the period specified in sub-section (1), shall satisfy itself that the property isprima facie 1[property] involved in money laundering and the property is required for the purposes of investigation under section 9.

1* * * * * * *

18. Retention of records.-(1) Where any record has been seized under section 14 or section 15 and the Investigating Officer has reason to believe that any of such records are required to be retained for an 1[investigation] under this Ordinance, he may retain such records for a period not exceeding ninety days from the time the record was seized.

(2) The person, from whom records were seized, shall be entitled to obtain copies of records retained under sub-section (1).

(3) On the expiry of the period specified under sub-section (1), the records shall be returned to the person from whom such records were seized unless the Court permits retention of such records beyond the said period.

(4) The Court before authorizing the retention of such records beyond the period mentioned in sub-section (1) shall satisfy itself that the records were required for the purposes of investigation under section 9.

1* * * * * * *

19. Presumption as to records or property in certain cases. Where any document of public record is found in the possession or control of any person in the course of a survey or a search 1[under this act] or where any records have been received from any place outside Pakistan duly authenticated by such authority or person and in such manner as may be prescribed in the course of proceedings under this Act, the Court or the investigating 1[or prosecuting] agency as the case may be, shall

(a) presume, that the signature and every other part of such record which purports to be in the handwriting of any particular person or which the Court may reasonably assume to have been signed, by or to be in the handwriting of, any particular person,, is in that person's hand-writing; and in the case of a record executed or attested, that it was executed or attested by the person by whom it purports to have so executed or attested; and

(b) admit the document in evidence, notwithstanding that it is not duly stamped, if such document is otherwise admissible in evidence.

 

1Ins., omitted and subs. by Act XXIII of 2015, s. 15-16-17.


 

 

20. Jurisdiction.-(1) The Court of Session established under the Code of Criminal Procedure, 1898 (V of 1898) shall, within its territorial jurisdiction, exercise jurisdiction to try and adjudicate the offences punishable under this Act and all matters provided in, related to or arising from this Act:

Provided,

(a) where the predicate offence is triable by any court other than the Court of Session, the offence of money laundering and all matters connected therewith or incidental thereto shall be tried by the Court trying the predicate offence; and

(b) where the predicate offence is triable by any court inferior to the Court of Session, such predicate offence, the offence money laundering and all matters connected therewith or incidental thereto shall be tried by the Court of Session.

21. Offences to be non-cognizable and non-bailable.-(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (Act V of 1898) and subject to sub-sections (2) and (3),

(a) every offence punishable under this Act shall be non-cognizable and non-bailable;

(b) no person accused of an offence punishable under this Act for a term of imprisonment of more than three years shall be released on bail or on his own bond unless

(i) the Public Prosecutor has been given due notice; and

(ii) where the Public Prosecutor opposes the application, the Court is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he is not likely to commit any offence while on bail.

(2) The Court shall not take cognizance of any offence punishable under section 4 except upon a complaint in writing made by,–

(a) the Investigating Officer; or

(b) any officer of the Federal Government or a Provincial Government authorized in writing in this behalf by the Federal Government by a general or special order made in this behalf by that Government:

Provided that where the person accused is a financial institution, the Investigating Officer or any other authorized officer, as the case may be shall, before filing such complaint, seek the approval of the concerned regulatory authority which shall not withhold its decision for a period exceeding sixty days.

(3) The Court shall not take cognizance of any offence punishable under sub-section (1) of section 33 except upon a complaint in writing made by the FMU.

(4) The power and discretion on granting of bail specified in clause (b) of sub-section (1) are in-addition to the power and discretion under the Code of Criminal Procedure, 1898 (Act V of 1898), or any other law for the time being in force on granting of bail.


 

 

22. Application of Code of Criminal Procedure, 1898 (Act V of 1898) to proceedings before Courts.-(1) The provisions of the Code of Criminal Procedure, 1898 (Act V of 1898) shall, in so far as they are not inconsistent with the provisions of this Act, apply to arrest, bail, bonds, search, seizure, attachment, forfeiture, confiscation, investigation, prosecution and all other proceedings under this Act.

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By |2016-07-23T12:44:37+05:00July 23rd, 2016|Laws|0 Comments

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