(12 hours ago) Today

http://www.dawn.com/2010/12/11/fia-to-deal-with-cases-of-money-laundering-2.html

ISLAMABAD: The government is reported to have decided in principle to allow only the Federal Investigation Agency to deal with cases of money-laundering in what is seen here as an attempt to protect the ruling elite whose cases are being pursued by National Accountability Bureau.

Sources privy to the development told Dawn on Friday that a decision to hand over the authority to FIA which works directly under Interior Minister Rehman Malik had been taken because NAB was perceived to be an autonomous body, now headed by a retired Supreme Court judge, Syed Deedar Hussain Shah.

Indications about such a decision appeared recently when a row broke out among three important institutions over who would handle with money-laundering cases.

Differences came to light last week after FIA’s new Director General Waseem Ahmed said in an address to a gathering at the Karachi Stocks Exchange last week said that now onwards the FIA would handle all money-laundering cases.

He warned all banks, financial institutions and stock exchange brokers to be vigilant and not to get involved in money-laundering.

The statement raised eyebrows at the State Bank of Pakistan and National Accountability Bureau which deal with cases under the Money Laundering Act.

It was reported that at the KSE some members complained to Mr Ahmed that FIA officials were creating problems for them in the name of investigation even though it was beyond the purview of their functions.

According to the Money Laundering Act, three government agencies deal with money laundering cases.

While FIA deals with cases related to terrorism, NAB takes up cases relating to financial crimes and Anti-Narcotics Force has purview to deal with narcotics-related cases.

The government is working on enacting a new accountability law under which NAB will be replaced by a National Accountability Commission. Under the law a retire judge of the Supreme Court will head the commission.

The sources said the government believed it would be difficult for it to control an apex court judge handling money-laundering cases whereas it would be relatively easy to manage FIA.

When contacted SBP spokesman Syed Waseemuddin said that such cases were basically the responsibility of Financial Monitoring Unit (FMU), a cell established in the SBP which worked under the Ministry of Finance.

The unit refers cases of money-laundering to the agency concerned (NAB) to investigate and initiate a legal action against the accused.

The sources said that Mr Waseem Ahmed was close to the interior minister and was brought to the FIA from Karachi where he was the Capital City Police Officer.

He is due to retire next month, but the sources said the minister would try to extend his tenure and give him the new assignment of handling money-laundering cases in order to justify the extension.

A senior NAB official who did not want to be named told Dawn that there was resentment in the bureau over Mr Ahmed’s statement that FIA would deal with all money-laundering cases.

He said that under the Money Laundering Act, such cases were handled by NAB.