FBR initiating new investigations under AMLA2020 to compliance with FATF

September 10, 2020: The Federal Board of Revenue’s (FBR) Intelligence & Investigation-Inland Revenue Thursday decided to initiate new investigations under Anti-Money Laundering Act 2010 (AMLA 2010) against the persons openly flouting the laws of the land and take existing pending investigation in money laundering (ML) to their logical conclusion.

The decision was taken All Pakistan Directors Conference (Intelligence & Investigation-IR) held here with an aim to achieve the desired targets and to meet the required compliance level of Financial Action Task Force (FATF) compliance.

Presiding over the meeting, Dr. Bashir Ullah Khan Marwat, Director General Intelligence & Investigation (IR) emphasized the two-pronged role of Intelligence & Investigation-IR as a spy arm of Federal Board of Revenue in detection of systemic tax evasions and as a Law Enforcement Agency (LEA) in pursuing cases of Money laundering (ML) under the Anti-Money Laundering Act 2010 (AMLA).

He stated that due to COVID-19 there was prolonged lockdown and slackness in the business but things have come to normalcy which now requires increased vigilance.

The Director General I&I-IR issued directions to keep strict vigilance on the sectors seemingly involved in high level of tax evasion with special focus on initiating cases of High Net worth Individuals.

He emphasized to give top priority to ML cases in line with the Government’s “Follow the Money” policy.

The Chair praised the performance of Directorate regarding filing of ML cases worth billions in the competent Courts of jurisdiction which has shown a phenomenal increase in the past few months.

With regards to sales tax matter, it was also decided in the meeting that the Directorates will conduct different sectoral studies/analysis and the Directorate General will particularly focus on prosecution of the gangs / rackets involved in fake and flying invoices which is one of the cause of revenue leakage in the sales tax regime.

Recently the Directorates General has busted gangs operating in Faisalabad, Lahore and Karachi and arrested number of persons. The suspects involved in these scams are being traced to retrieve the loss of revenue.

Intelligence and Investigation assists the Inland Revenue field offices in maximizing revenue collection by creating a credible deterrence.

Based on the future work plan, the conference showed commitment and devotion to curbing the tax evasion and achieving desired results in accordance with the FATF standards.

It was emphasized again and again that henceforth no leniency be shown to the persons involved in tax evasion or money laundering so that a system based inflow of taxes starts coming to the national exchequer with this impression that vigilance wing of FBR is taking due cognizance of all irregularities and malpractices.

It was also decided that law of the land will be applied across the board without any influence or pressure in a transparent manner.

APP