Bankers are pressing for Pakistan to adopt a series of amendments aimed at toughening the country’s Anti-Money Laundering (AML) Act.
They say that current legislation falls short of global standards and is preventing them and their clients from obtaining trade finance.
A proposed new AML Act is currently under discussion at the Senate finance committee and is proving controversial.
Banks and the government are arguing for tougher AML legislation, but some opposition politicians argue that the amendments will be bad for business and that the amendments would drive people out of the formal economy.
Bankers however argue that the current law is damaging the economy. “A lax AML law is creating problems for the banks in dealing abroad,” according to president of Habib Bank, Nadeem Dar.
“Every year, the environment is getting worse and banks are facing increasing difficulties in getting cheques cleared and opening letters of credit abroad,” according to CEO of Bank Alfalah Atif Bajwa.
The amendments, if approved, would bring Pakistan’s AML legislation in line with international standards drawn up by the Financial Action Task Force.
Categories: Trade Based Financial crimes News