The government has decided to ban people convicted for criminal offenses from holding ownership of or positions in Designated Non-Financial Business and Professions (DNFBPs), in compliance with the Financial Action Task Force’s (FATF) conditions.
According to the FATF, real estate developers and agents, precious stones dealers, law firms, accounting firms, audit firms or insolvency firms, and company service providers fall in the category of DNFBPs.
Pakistan deals with DNFBPs through the Anti-Money Laundering and Countering Financing of Terrorism Regulations in the country. In this regard, the Federal Board of Revenue (FBR) has decided to closely monitor any changes in the ownership and positioning of the DNFBP’s structures. It has also directed the DNFBPs to prevent convicts from entering these professions.
The notification issued by FBR read: “Every DNFBP shall ensure that it has measures in place to prevent any person who has been convicted of a criminal offence or any associate of such a person from holding any ownership or controlling interest in the DNFBP, being the beneficial owner of the DNFBP and holding any senior management or board position in the DNFBP.”
It continued: “Every DNFBP shall notify the FBR when there is a change in any ownership or controlling interest in the DNFBP, any beneficial owner of the DNFBP and any senior management or board position in the DNFBP”.
The government had previously also banned convicted persons from becoming shipping agents. It seems to be tightening its reins around convicts to restrict them from obtaining any decision-making positions and the execution of decisions.