Senate Body Expresses Dissatisfaction On SBP Response On Money Laundering

The Senate Standing Committee on Finance and Revenue expressed dissatisfaction with the State Bank of Pakistan's (SBP) response regarding the investigation into substantial money laundering by solar panel importers

ISLAMABAD, (UrduPoint / Pakistan Point News - 19th Dec, 2023) The Senate Standing Committee on Finance and Revenue expressed dissatisfaction with the State Bank of Pakistan's (SBP) response regarding the investigation into substantial money laundering by solar panel importers.

The committee meeting, chaired by Senator Saleem Mandviwalla, at the Parliament House on Tuesday, observed that the SBP might be withholding important details, proposing an in-camera meeting for further discussion.

During the deliberations, it was noted that the deputy governor failed to provide sufficient details on actions taken against accused parties and banks involved in money laundering.

The committee learned that banks had filed 9,170 Cash Transaction Reports (CTSs) against importers flagged by the SBP, resulting in penalties totaling approximately 90 million rupees for around 69 billion rupees of overpricing. Actions were taken against 17 bank officials.

The committee argued that the imposed penalties did not align with the gravity of the crime and advocated for enhanced legislation with stricter penalties for offenses impacting the country's economy. Additionally, the committee recommended further discussions on fortifying rules and regulations, requesting a comprehensive, tabulated report on the number of banks involved, the amount of money in laundering activities, and the penalties imposed.

In a separate briefing on the reported strategic cooperation agreement between HBL and the Bank of China, the committee learned that a Memorandum of Understanding (MoU) for Strategic Cooperation had been signed.

The committee commended this initiative, anticipating improved trade opportunities for Pakistan.

The State Owned Enterprises (Governance and Operations) (Amendment) Bill, 2023, introduced by Senator Bahramand Khan Tangi, was deferred. The committee proposed presenting a comparative report between the previous bill and the proposed amendments for a comprehensive evaluation. The bill aims to amend the act, ensuring the board's detachment from the day-to-day functioning of the company. It was argued that directors using company assets for political purposes should be disqualified, and the appointment of the CEO should shift from the board to the controlling ministry after board recommendation. The committee endorsed the proposition but sought a comparison report for further deliberation.

Similarly the Banking Companies (Amendment) Bill,2023 moved by Senator Naseebullah Bazai was also deferred as the mover sought time for detailed briefing.

Public Petition related to SEZ was recommended to be referred to Standing Committee on Cabinet Secretariat since the matter pertains to BOI( Board of Investment)

Earlier, in the meeting, the chairman committee also emphasised on the issuance of fake currency and remarked that SBP to ensure advance mechanism related to fraudulent currency matters

The meeting was attended by Senators Farooq Hamid Naek, Musadik Masood Malik, Saadia Abbasi, Zeeshan Khanzada, Mohsin Aziz, Faisal Saleem Rahman, Kamil Ali Agha , Dilawar Khan, Bahramand Khan Tangi, and Senator Naseebullah Bazai. Representatives of attached departments were also in attendance.