Ikram Sehgal
Billions of ill-gotten dollars are laundered through financial institutions every year globally. Illegally acquired money can also be laundered without the assistance of the financial sector. The nature of the services and products offered by the financial services industry (namely managing, controlling and possessing money and property belonging to others) means that it is vulnerable to abuse by money-launderers.
Financial crimes mostly relate to narcotics trafficking, terrorism, smuggling, tax evasion, and corruption. This is compounded by respectable bankers becoming part of the process, either through greed, or in many cases, through threats and intimidation. In an August 2017 report, the Basel Institute on Governance ranked Pakistan 46 out of 146 countries that face significant money laundering and terrorism financing risks. The US State Department’s International Narcotics Control Strategy Report in early 2017 estimated that 10 billion dollars are laundered by Pakistanis every year. Billions are shipped off by criminals and corrupt individuals in an effort to escape paying taxes and avoid government scrutiny.
Countering money laundering and the financing of terrorism in line with Pakistan’s action plan agreed on with Financial Action Task Force (FATF), continues to be a serious problem. The World Economic Forum’s (WEF) “Partnering Against Corruption Initiative” (PACI) Fall Meeting held last October in Geneva agreed that without conforming to international standards, there can be no effective implementation of laws. Without adequate proof of assets and money trails, it is almost impossible to prove a crime in court. Meaning as long as the methods and tools of investigation in developing countries remain outdated, there will be little progress. Developed countries, where most of the ill-gotten money and assets reside, pontificate endlessly about adhering to the “rule of law”.
Even if anti-money laundering laws are in place, corrupt politicians and others, criminals included, will find loopholes in the banking and legal system around the world because of banks willing to handle their ill-gotten money and bribery payments in safe havens.
On July 6, ousted prime minister (PM) Nawaz Sharif was sentenced to 10 years rigorous imprisonment in the Avenfield Apartments corruption reference by a National Accountability Bureau (NAB) accountability court. His daughter Maryam was awarded 7-years imprisonment, and her husband was sentenced to a year in jail. The court also disqualified all three from holding any public office for 10 years and availing any bank loans for the same period under Section 15 of the NAO.
Nawaz and Maryam are presently in London and are scheduled to return to Lahore on Friday, July 13. Lahore is considered the Pakistan Muslim League – Nawaz (PML-N)’s stronghold and preparations are being made by the party leadership to give their leaders a “historic welcome”. It is obvious that this is just to flex political muscle.
The PML-N wants nothing but a confrontation with law enforcement agencies and then play an innocent victim by claiming Nawaz Sharif has been denied the right to speak to his followers. This is a very dangerous game and the government must not fall into this trap. With the situation likely to get out of hand, the alternative could be to divert the flight from Lahore to another city, arrest the duo and whisk them away to Islamabad, all this without making it public.
PML-N’s leadership claims the ousted PM is extremely popular in Pakistan, brazenly declaring that Nawaz Sharif has the mandate of 200 million Pakistanis. This is an outright lie! In the 2013 elections PML-N obtained 14.9 million votes, or 32 percent of the 46 million out of the 86 million who voted. Furthermore, the “first past the post system” does not ascertain the real majority, the “run-off” measure does. Negating “proportional representation” bedevils good governance as has now been proven with Nawaz Sharif being sentenced for corruption.
