Tax evaders cannot escape from criminalization and confiscation of proceeds of crime under Anti-Money Laundering Act-2010
In a Landmark Judgement on the offence of Money Laundering (ML) based on tax evasion as a predicate offence, the Honorable Lahore High Court in Writ Petition No.16567 of 2021 and more than 180 connected Writ Petitions issued a detailed Judgement on 10.09.2022 in favor of FBR. The following were four categories of writ petitions.
A. The petitioners challenged filing of FIRs under Anti-money laundering Act 2010 by the three regional Directorates (Lahore, Faisalabad & Multan) of Directorate General Intelligence & Investigations Inland Revenue. The Honorable Court dismissed such writ petitions.
B. The petitioners challenged the summons issued under section 160 of the CrPc. The Honorable Court dismissed such writ petitions.
C. The petitioners challenged the call up notices (preliminary inquiry) duly supported with detailed reasons. The Honorable Court dismissed such writ petitions.
D. 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 investigation can be utilized in case fresh notices are issued.
Over all, 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 judgement is a landmark achievement of the AML regime in general and FBR /Directorate General Intelligence & Investigation Inland Revenue in more 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 and vibrant in curbing the menace of money laundering.
