Senate Approves National Financial Crimes Authority


The Senate in Pakistan approved a crucial bill titled the "National Anti-Money Laundering and Counter Financing of Terrorism Authority Bill," despite facing opposition from certain Senators. The legislation was introduced a day after being hurriedly passed in the National Assembly.

State Minister for Foreign Affairs, Hina Rabbani Khar, presented the bill to the Senate. According to the draft, the proposed authority will be chaired by a designated chairman and include representatives from various federal departments, regulatory bodies, and provincial administrations. The primary goal of this authority is to strengthen coordination and cooperation in the fight against financial crimes and ensure compliance with international standards.

The bill faced scrutiny as many officials in the proposed authority were also part of Nacta, an existing organization established in 2008 to enhance counter-terrorism efforts. However, Nacta remained inactive for years due to a lack of member availability for convening meetings.

The new legislation grants the proposed authority the power to hold meetings upon the chairman's request or when at least half of its members requisition a meeting.

The draft bill also emphasizes Pakistan's commitment to cooperate with international organizations in matters of anti-money laundering, counter-financing of terrorism, and targeted financial sanctions, by establishing the required legal and regulatory framework.

State Minister Hina Rabbani Khar defended the bill, highlighting its importance in continuing the country's efforts to exit the Financial Action Task Force (FATF) grey list. She explained the historical context of FATF's establishment by G7 countries in 1989 to address money laundering, later expanding its mandate to include countering terrorist financing in 2001. The United Nations Security Council has recognized FATF as a global norms setter for anti-money laundering, terrorist financing, and controlling proliferation.

The bill aims to institutionalize efforts against financial crimes by setting up a designated authority. Khar requested the Senate to expedite the passage of the bill.

The debate witnessed a mix of opinions from Senators, some voicing concerns about the rush of passing multiple bills within a short span, while others highlighted the significance of the legislation for Pakistan's international standing.

In addition to the anti-money laundering bill, the Senate also approved several other bills, including amendments to various educational and regulatory institutions. However, the Pakistan Electronic Media Regulatory Authority (Amendment) Bill, 2023 faced strong opposition and was referred to the relevant standing committee. This bill aims to streamline the procedures for monitoring TV channel rating agencies but has raised concerns among broadcasters about the scope of powers granted to the regulatory body.

The Senate proceedings underscored the country's legislative engagement and the importance of addressing critical issues such as financial crimes and media regulation through robust discussions and debates.