BANKING LAW NOTES- AMLA, 2010 | 7th Semester

THE ANTI-MONEY LAUNDERING ACT, 2010

Sec.5 Committees
Two committee to be established as per the law;
i. National Executive Committee
ii. General Committee
NATIONAL EXECUTIVE COMMITTEE
Structure:
Finance Minister Chairman
Foreign Minister Member
Law and Justice Minister Member
Interior Minister Member
Governor SBP Member
Chairman SECP Member
DG Member
Any other by FG Member
Functions:
i. Implementation of policies to fight against ML
ii. Determine the offences which fall under the category of Predicate offences.
iii. Guidance
iv. Recommendations to the FG on policy making
v. Issue necessary orders to the agencies.
vi. Discussion on any other matter of importance.
vii. Perform the other functions given by FG.

GENERAL COMMITTEE
Structure:
Finance Secretary Chairman
Interior Secretary Member
Foreign Affairs Secretary Member
Law Secretary Member
NAB Chairman Member
FBR Chairman Member
DG FIA Member
DG ANF Member
DG SBP Member
Commissioner SECP Member
DG Member
Any other by FG Member 1

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 BANKING LAW NOTES- AMLA, 2010 | 7th Semester

Functions:
i. Development and Training of :
a. Investigating agencies
b. FMU
c. FI
d. Non- FIB
e. Professions
f. Other persons
ii. Assistance to the National Executive Committee
iii. Discussion on any other money laundering matter.
iv. Approval of FMU budgets for implementing the act.
v. Approval of FMU’s staff necessary matters.
vi. Perform other functions as FG assign.

Sec.6 Financial Monitoring Unit

Establishment and Head:
i. FG shall establish the unit.
ii. Shall be located at SBP or any other place.
iii. DG(Finance specialist) appointed by FG in consultation with SBP.
iv. The General committee shall overview the FMU.
v. FMU may order regulatory authorities for necessary actions
vi. DG may freeze property for 15 days.
Functions:
i. Receiving complaints about suspicious financial transactions & CTRs.
ii. Analyzing the transactions and may call for information from the agencies.
iii. Spreading the information for inquiry secretly.
iv. To develop software for efficient and timely work.
v. Co-operation with international agencies for information exchange.
vi. To represent the Pakistan
vii. To submit following to the GC and NEC;
a. Annual report
b. Statistics
c. Prosecutions ( matters got resolved )
d. Recommendations to combat ML
viii. To maintain connection b/w SBP and information sources(FI, Non-FIB etc)
ix. To suggest rules to the regulatory authorities
x. Implementation of the act.
xi. Other functions necessary to implement the act.
xii. FG shall establish the unit. 2

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 BANKING LAW NOTES- AMLA, 2010 | 7th Semester

xiii. Shall be located at SBP or any other place.

xiv. DG(Finance specialist) appointed by FG in consultation with SBP.
xv. The General committee shall overview the FMU.

Sec.7 Procedure of giving information to FMU by reporting entities

• The reporting agency shall file the information if has belief that:
i. Transaction involves secret of proceeds of crime.
ii. Deceiving to fulfil the legal requirements.
iii. No lawful purpose of the transaction
iv. Transaction relates to terrorism.
• The time limit to file report of transaction is 7 seven days after transaction.
• Reporting source shall maintain the record of information for 5 years.
• The section prevails where any other law directs to hide any information.

Sec.8 ATTACHMENT OF PROPERTY

i. On the reasons to believe that the property is involved in ML , IO my attach
property for 90 day from his order.
ii. IO shall within 48 hours forward his order to the agencies who has given him
information.
iii. Interested persons in the immovable property shall be entitled to the enjoyment.
iv. The IO shall submit monthly progress report of his investigations in the court.
v. FG shall establish the unit.
vi. Shall be located at SBP or any other place.
vii. DG(Finance specialist) appointed by FG in consultation with SBP.
viii. The General committee shall overview the FMU.

Sec.9 INVESTIGATION
i. IO within 7 days from his order of attachment or seizure send notices to the
interested persons.
ii. The notice shall be for show cause of(have to prove ) within 30 days:
a. Income sources
b. Earning
c. Means of acquisition of the property
iii. IO shall hear the aggrieved person.
iv. IF property involved in ML, the IO shall refer to the court for confirming the
attachment.
v. The attachment shall continue till the decision of court.
3

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 BANKING LAW NOTES- AMLA, 2010 | 7th Semester

vi. If confirmed by the court that property is involved in ML, IO shall take the
possession.
vii. If property is perishable, IO may apply to the court for sale.
viii. Court decide that the attachment made by IO is valid, then court shall order for
forfeiture (Zabt karna) of the property.
ix. On the reasons to believe that the property is involved in ML , IO my attach
property for 90 day from his order.
x. IO shall within 48 hours forward his order to the agencies who has given him
information.

Sec.10 VESTING OF PROPERTY IN FG

i. AFTER forfeiture, the property shall be vested absolutely in FG.
ii. All fraudulent encumbrances or leases shall be invalidated.
iii. The section can’t discharge a person from liability arouse from the encumbrance.

Sec.11 MANAGEMENT OF FORFEITED PROPERTY

i. FG shall appoint an administrator.
ii. The administrator shall manage the property as per courts order.
iii. The administrator shall dispose of on the directions of FG.
iv. If property is perishable, the administrator may sell after notice to FG

Sec.12 EXEMPTION OF REPORTING SOURCES

i. REPORTING SOURCE like;
a. FI
b. Non-FIB
c. Professions
Are not held to be liable for any civil or criminal liability.

Sec.13 POWER OF SURVEY

i. With the reason so believe and permission of court, IO can enter any place within
its jurisdiction and any other jurisdiction so permitted by the authority.
ii. It is the duty of attendee to:
a. Give necessary facilities to the IO to inspect the record and property.
b. Give necessary help to check him the transactions validity
c. Give necessary information
iii. After completion of survey, within 48 hours, IO shall forward copy of the report
on inspection to the agency.
iv. IO can mark, copy and take statement regarding (person present).
4

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 BANKING LAW NOTES- AMLA, 2010 | 7th Semester

Sec.14 SEARCH AND SEIZURE

i. GROUNDS OF SEARCH:
a. Commission of ML offence
b. Possession of ML property
c. Possession of needed information for this act.
ii. POWERS OF INVESTIGATING OFFICER (with the court’s permission):
a. Enter and search any object
b. Break and open the locked and safe objects
c. Seize any property or record
d. Mark of identification
e. Make copies of the record
f. Examine any person
iii. IO shall send the search report to the head of agency secretly.
iv. IO can seize the evident objects if found during survey(Sec.13)

Sec.16 POWER TO ARREST

i. IO on the reasons in writing can arrest a person with court’s warrant.
ii. IO shall forward the copy secretly.
iii. Person arrested shall be presented before magistrate within 24 hours. The journey
time shall be excluded.

Sec.17 RETENTION OF PROPERTY

i. Where any property has been seized, IO is satisfied that the property must be
retained for the investigation further.
ii. The IO can retain property for 90 days after seize.
iii. IO shall forward the copy
iv. On the expiration of 90 days, property shall be returned unless court permits to
retain for more time.
v. The court shall state the grounds of extension of further retention.

Sec. 23 APPEAL TO HIGH COURT

i. Judgment debtor has 60 days to appeal to the High Court from Final order.
ii. On sufficient cause, the court may extend period to appeal less than 60 days.
iii. High Court is:
a. In whose jurisdiction aggrieved person resides o carries business or works.
b. In whose jurisdiction respondent resides or carries business or works when
FG is aggrieved party. 5

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 BANKING LAW NOTES- AMLA, 2010 | 7th Semester

Sec.26 AGREEMENT WITH FOREIGN COUNTRIES

i. FG may enter into agreement with foreign countries on specific condition for the
purpose of :
a. Investigation and prosecution of offences under this act.
b. Gaining information to prevent the commission of offence
c. Getting help and evidence
d. Transferring property related to the offence.
ii. The agreement shall not be enforceable if it is harmful to the:
a. Sovereignty
b. Security
c. National interest
d. Public order

Sec.27 LETTER OF REQUEST TO A CONTRACTING STATE

i. IO or superior ranked officer may issue a letter to the authority of contracting state
for the purpose of:
a. Examination of facts of the case
b. Taking steps regarding the case
ii. The manner of transmitting of letter shall be according to FG order.
iii. Whatsoever received from the contracting state, is evidence to the case.

Sec.29 RECIPROCAL ARRANGEMENTS

i. Court of Any of the Contracting state can make letter of request to other party for
the purpose of:
a. Service of summons
b. Arrest warrant
c. Summons to require in person
d. Search warrant
ii. When it is from Pakistan, then FG shall specify the regulations regarding
execution of the purpose mentioned above herein.
iii. On exchange of prisoner, both contracting parties can impose conditions and
other party shall comply with the said conditions.

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 BANKING LAW NOTES- AMLA, 2010 | 7th Semester

Sec.30 ATTACHMENT, SEIZURE AND FORFEITURE OF PROPERTY IN A

CONTRACTING STATE OR PAKISTAN
i. Where IO or Court has ordered for the attachment of property but it is located in
contracting state.
ii. Then, the court of Pakistan shall send request letter to the court of contracting
state.
iii. When foreign contracting party, requires attachment of property in Pakistan, the
FG shall receive the request and send it to the investigating agency for the
execution of request.
iv. If execution of request from foreign contracting party violate the law in Pakistan
or harmful to the sovereignty, security, national interest, or public order. The
execution shall not be complied.

Sec.32 PUNISHMENT FOR VEXATIOUS SURVEY AND SEARCH

i. When IO, without the permission of court,
a. Surveys or search
b. Detains or arrest a person
ii. The punishment shall be; 2 years and 50,000 fine

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