PTI govt to adopt strict policy against use of 'cash couriers' by businesses: report

ISLAMABAD: The Pakistan Tehreek-e-Insaf led government is weighing over options to impose heavy penalties on the use of cash couriers by businesses across the country, reported The News. 

The move, that may be forced in through a presidential ordinance, is widely seen as a bid to curb money laundering and terror financing on the recommendations of the Financial Action Task Force (FATF). 

In October this year, the FATF, a multilateral financial task force mandated with curbing money laundering and terror financing, had given Pakistan until February 2020 to improve its financial regime. 

In this regard, the group had also asked Pakistan to implement a 27-point financial reform agenda to improve laws against money laundering and terror financing. The agenda had been issued at a previous meeting. 

Businesses advised to install sale software

According to The News, the new presidential ordinance against cash couriers, will also cover penalties for non-compliance, as the Federal Board of Revenue (FBR) plans to impose penalties against the practice. 

Many big retailers, restaurants and shopping malls refuse to install a software known as Point of Sale (POS) at their premises, thus increasing their reliance on cash couriers, reportedThe News.

“The upcoming ordinance will also include clauses related to government-FBR agreement on different points which they struck back in October 2019,” top official sources told The News.

FBR Chairman Shabbar Zaidi also confirmed that the ordinance would be promulgated, probably in the ongoing week, for imposing penalties against cash couriers and making trader agreements effective.

The federal cabinet has also reportedly given the nod to the proposed ordinance, that is aimed at complying with FATF requirements by moving against non–compliant through imposition of penalties.

Meanwhile, the FBR has given a December 31 deadline to big shopping malls and restaurants for installing the new POS software on their premises or face forced closure. 

Pakistan to defend policies at next FATF meeting

Pakistani authorities have to submit replies to 150 questions/clarifications/ points raised by a joint group of FATF till January 8, 2020. 

The meeting of FATF is scheduled to take place from January 21 to 24 at Beijing, where Pakistani authorities would defend their compliance to the recommendations of the financial body. 

The FATF final plenary meeting will decide either to take Pakistan off a grey-list of countries involved in terror financing, or to place it on another list. 

The International Monetary Fund, in its latest staff report on the country, stated that a potential blacklisting by FATF could result in freeze of capital flows and lower investment to Pakistan. 

Originally published in The News