Initiation of anti money laundering proceedings

KARACHI: The Sindh High Court issued notices to the deputy attorney general, Federal Investigation Agency and others on a petition of Axact’s Chief Executive Officer Shoaib Ahmed Sheikh against the initiation of proceedings under the Anti-Money Laundering Act.
Petitioner Shoaib Ahmed Sheikh, Viqas Ateeq and Axact challenged the vires of the Anti -Money Laundering Act and the initiation of proceedings against them under the AML Act by the FIA. Petitioner’s counsel Abid Zuberi submitted that the FIA initiated proceedings against the petitioners under the AML and obtained the court order regarding provisional attachment of accounts, properties and assets.
He submitted that the FIA on August 15 issued a show cause notice to the petitioners under Section 9 of the AML Act following the registration of a complaint against the petitioners directing them to submit details of the source of their income, earning and assets.
He submitted that the FIA in impugned notice had called the petitioners to explain the position within 10 days why amounts in their accounts should not be forfeited to the federal government.
The counsel mentioned that Section 9 of the AML Act itself provides at least 30 days which would be expired on September 15, therefore, no action could be taken against them unless time provided in the Section 9 of the AML Act. He sought protection in the matter by directing the FIA not to finalise the proceedings within a statutory period of 30 days.
The SHC’s division bench, headed by Justice Sajjad Ali Shah, issued notices to the deputy attorney general, FIA and others for September 15 and in meantime directed that the FIA shall not finalise the proceedings instituted against the petitioners within the statutory period of 30 days.