READING BETWEEN THE LINES OF MONEY

LAUNDERING ORDINANCE 2009

------------PRESENTED BY
SARFRAZ AHMED SHAIKH
Assistant Legislative Draftsman/Parliamentary
Counsel
Ministry of Law, Justice & Parliamentary Affairs
8th March, 2010

SARFRAZ AHMED SHAIKH

Assistant Legislative Draftsman/Parliamentary Counsel
Ministry of Law, Justice & Parliamentary Affairs
Islamabad

PRESENT POSITION

Passed by Senate Committee with a

time limit of one year for reviewing
the law & rationalizing the Schedule
Further amendments in Senate
If not passed till 26th March it will be
repromulgated
(PLD 1999 Lahore 320 , 1999SCMR
264)

FEDERALL ADMINISTERED
TRIBAL AREAS

All the laws of Agencies apply to FATA

Section 39 of AMLO 2009 clears the
position
The net effect is that action under
AMLO can be taken by the Agencies
in FATA provided the laws given in
their respective Schedules also
extend to FATA

FMU, SBP and SECP

What is the status of FMU under AMLO

Why SBP is included
Why SECP is included
Rule 8 of the Rules of Business 1973
Government is run by sharing of
responsibility amongst its various limbs
and not by shifting of responsibility

Flag State Jurisdiction

Section 188 of CrPC---Also refers to

Extradition Act 1972

Section 4 of PPC

Section 22 of AMLO 2009

Issue of Cognizable & nonCognizable

Section 14 (2), 16 & 21 of the AMLO

make search, seizure and arrest noncognizable
Offences under the respective laws of
Agencies are cognizable---Section 5(3)
of the FIA Act states that all offence
under the Schedule of FIA Act 1974 are
cognizable (AMLO is also in Schedule?)
The statute later in time shall prevail
Section 24 of NAB Ordinance 1999
makes it cognizable

Contd..

Section 6(3) of ANF Act 1997 makes it

cognizable in respect of all offence
related to section 5 (a) of the ANF Act
1997
Hence the problem lies with the
offences which are exclusively the
offence of money laundering but for
the offences of money laundering
which are based on other offences, the
issue of non-cognizable does not arise

Schedules of Agencies laws and

AMLO

Section X of the Schedule of the AMLO

includes in it the NAB Ord 1999 and
Section VIII includes CNS Act 1997,
but FIA Act is not in its Schedule
On the other hand AMLO is included in
the Schedule of FIA Act 1974
So the cumulative effect is that it goes
both ways & there is no impediment
for NAB or ANF to investigate for
money laundering

Reporting Entity of STR & CTR

Two express reporting entities as per

the definition clause of AMLO
Two implied reporting entities under
sub-sections (2) and (6) of section 7 of
the AMLO 2009
Section 12 provides indemnity to all
reporting entities and this provision
prevails over any contract between the
client and the Financial Institution and
even the priviliged communication
between the client and the Lawyer

 Sections

39 and 22 of the
AMLO 2009 need to be
explained

Subordinate Legislation---Its
purpose

Anti-Money Laundering Regulations

2008 made under section 44 read with
section 6 (4) (h) of AMLO 2009 and
issued vide SRO 02(KE)/2009, dated the
22nd November 2008..its contents
Anti-Money Laundering Rules 2008
made under section 43 of AMLO 2009
and issued vide SRO 05(KE)/2009, dated
the 22nd November, 2008..its contents

THANKS
Q&A