A senior official who was involved in budget making process on condition of anonymity said that decision to carry out audit once in three years was taken after thorough deliberations with the objective of averting multiple selections of one taxpayer in the audit exercise.
There were complaints that names of the same tax payers were being selected for the audit. There is nothing in the Finance Bill 2018 contrary to the framework of FATF and "great care has been taken in this regard while preparing the budget", he added.
Talking to Business Recorder former Finance Secretary Dr Waqar Masood endorsed Finance Ministry's view point, saying that the proposed amendments in the Income Tax Ordinance 2001, Sales Tax Act, 1990 and Customs Act done through Finance Bill 2018, will not effect any requirement of the FATF.
The Ministry of Finance further told Business Recorder that actions and evidence will be required from Pakistan on a consistent basis for investigations, prosecutions and convictions on terrorism financing offences and the country needs to develop a plan of action in consultation with Asia Pacific Group and other stakeholders on money laundering to comply with the FATF standards.
According to a Finance Ministry official, the way forward on FATF compliance is greater focus on the implementation aspects along with actions and evidence on a consistent basis on the following: (i) application of targeted financial sanctions to properties of entities listed or proscribed under UNSCRs 1267 and 1373; (ii) investigations, prosecutions and convictions on terrorism financing offences; (iii) supervision over financial institutions in combating financing terrorism (CFT) context, (iv) enforcement against money services businesses (MSBs) in CFT context; (v) measures against illicit cross-border cash transportation in CFT context; (vi) inter-governmental coordinative approach is vital to making timely progress; and (vii) a regular monitoring mechanism would be set up to ensure progress and maximum international support is quintessential at FATF/ICRG and APG.
FATF sets standards to protect the global financial system from money laundering and terrorist financing (ML/TF) risks as UNSCR makes it binding on member countries to comply with FATF recommendations.
To comply with one of the major FATF's demands, the National Assembly Standing Committee on Interior on April 25 finalized the draft of Anti-Terrorism (Amendment), Bill, 2018 with a view to thwarting the looming threat of putting Pakistan on the "blacklist".
The Foreign Office sources said the amendment in the ATA is aimed at making the law compliant with the UN Security Council Resolutions 1267 and 1373.
"There is pressure on Pakistan from the international community to implement the UN Security Council Resolutions in letter and spirit with regard to proscribing any entity or individual," an official said, adding that the new amendment will address their concerns.