modaraba scheme. The SECP admitted that it was happening and there was need to impose a bar by amending the laws.
The committee refused to approve the amendments in Anti Money Laundering (AML) law in its existing shape as tabled by the federal government and decided to further deliberate to ascertain exact list of offences of tax laws for making it part of money laundering law.
An independent advocate on international law Mr Mohsin who was invited by the Committee recommended to include only serious offences such as tax frauds into the list of money laundering to make it in accordance with best international practices. He cited an example that India was making plans for including foreign assets obtained through illegal or untaxed money as part of the law against money laundering.
The FBR officials argued that they proposed Rs1 million in shape of income tax and Rs5 million as Sales Tax as ceiling for making cases through proposed amendments in AML with the condition that the committed tax fraud had exhausted two forums till tribunals.
But Senator Ilyas Bilour told about his own case when he was asked to give Rs7.5 million for getting favorable decision at the tribunal level but when he did not oblige the decision was made in such a way that higher tax rate was imposed on him but he approached the high court against the decision of the tribunal.
The Committee also took up alleged corruption in privatisation of MCB. They wondered that when the NAB official informed the Committee that they possessed photocopies in 21 folders that they got from the SBP in this case. When the NAB official was informed that in the last meeting they confirmed that the original record was available with them but the NAB official categorically stated that the investigation team did not possess original record of this case.
“We have held meeting with Secretary Finance to get record of this case and written to them as well,” he said. The Finance Division replied that they did not possess original record of this case and whatever would be available it would be handed over to NAB,” he added.