Pakistan moves on trade-based money laundering strategies

Pakistan is making progress in its efforts to curb trade-based money laundering (TBML), particularly in respect of the mis-invoicing of imports and exports according to the country’s commerce minister.

But Khurram Dastgir Khan admits that there are still weaknesses in the country’s systems for detecting TBML as goods enter or leave Pakistan.

Mixed views

The minister said that the National Tariff Commission (NTC) has been relaunched, and expressed confidence in the ability of its newly appointed five-member leadership team, which is focused on ensuring that international trade generates the revenues it should.

But the minister is less confident in terms of the competence of officials operating elsewhere in the revenue collection system. “We have strengthened institutions like NTC but the shortage of the right kind of officer is hampering work in our ministry,” Dastgir told local media at a news conference.

Reformed commission

The NTC has been non-operational for one-year while the relaunched commission will operate under new legislation ratified in 2015.

New functions of the NTC include advising the government on tariff and other trade measures to provide assistance to and improve the competitiveness of domestic industry, including in respect of international trade.

Co-operation with China

In a separate effort to curb TBML, Pakistan and China have this year launched an electronic data interchange (EDI).

The EDI will allow the prices of good crossing the two countries’ borders to be compared with market prices. It is operated jointly by Chinese and Pakistani customs.

Categories: Trade Based Financial crimes News

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