The government has taken a significant step to combat money laundering and terrorist financing by proposing the establishment of a commission, following recommendations from the International Monetary Fund (IMF), according to sources.
This commission is intended to function as a regulatory authority, aiming to prevent both internal and external financing associated with money laundering and terrorism.
The Ministry of Finance has submitted a summary to the Federal Government, suggesting the formation of the commission.
The proposed candidates for the chairman position are Shahid Ali Khan, a former federal secretary, and Mushtaq Ahmad Sukhira, a former Inspector General, the sources said.
The initial summary has been forwarded to the Prime Minister and the Cabinet for consideration and approval of the Chairman’s appointment. Detailed rules, regulations, and the organizational structure of the commission will be established subsequently.
The commission’s responsibilities are expected to encompass the inspection and monitoring of banks and financial transactions nationwide.
Its primary focus will be on taking proactive measures to prevent the financing of terrorism. Additionally, the commission, operating under the Anti-Money Laundering Act, will have the authority to gather information on investments in insurance and Takaful, investigate savings accounts, insurance policy beneficiaries, or nominees, and supervise transactions and accounts related to business and commercial contracts.
The commission will also have the capability to gather information on property sale and purchase transactions.
This development signifies a concerted effort by the government to strengthen its mechanisms against financial crimes and ensure the integrity of the financial system.