Lahore High Court Issues Decree for Strict Enforcement of Anti-Money Laundering Act

After a detailed judgment of the Lahore High Court in favor of the FBR, tax evaders cannot escape criminalization and confiscation of proceeds of crime under Anti-money Laundering Act 2010.

After the decree, under the AML Act now anyone violating the law can be proceeded against by filing of FIR, issuing summons and call-up notices, (which he has to respond) and its supported records can be used with and all kind of notices.

In a landmark judgment on the offense of money laundering (ML), based on tax evasion as a predicate offense, the Honorable Lahore High Court, in Writ Petition No. 16567 of 2021 and more than 180 connected Writ Petitions, issued a detailed judgment on 10 September 2022 in favor of FBR.

The following were four categories of writ petitions.

1. ​The petitioners challenged the filing of FIRs under Anti-Money Laundering Act 2010 by the three regional Directorates (Lahore, Faisalabad & Multan) of the Directorate General Intelligence & Investigations Inland Revenue. The Honorable Court dismissed such writ petitions.
2. The petitioners challenged the summons issued under section 160 of the Code of Criminal Proceedings. The Honorable Court dismissed such writ petitions.
3. The petitioners challenged the call-up notices (preliminary inquiry) duly supported with detailed reasons. The Honorable Court dismissed such writ petitions.
4. The petitioners challenged the call-up notices, which were not duly supported with detailed reasons. The Honorable Lahore High Court allowed such writ petitions, however, it held that the record/evidence/information already collected during the investigation can be utilized in case fresh notices are issued.

Overall, the Honorable Court scrutinized the whole AML regime; upheld the vires of notifications issued by the Federal Government and the Standard Operating Procedures (SOPs) issued by the Directorate General I&I IR.

The judgment is a landmark achievement of the AML regime in general and FBR/Directorate General Intelligence & Investigation Inland Revenue in particular. It will further strengthen the Anti-Money Laundering regime of Pakistan. It is also testimony to the fact that the AML regime of Pakistan is not only sustainable but is also effective in curbing the menace of money laundering.