The government’s ongoing crusade against the menaces of money laundering and terrorism financing will be facilitated with the establishment of a new high-tech data centre at the financial monitoring unit (FMU) in Karachi on Friday. Laced with the state-of-the-art software, specially designed by international organisations fighting against illicit drugs and crime, the centre would play a critical role in automating the collection as well as analysis of a significant number of dubious financial transactions through banking channels.
While the system would not yet be able to detect money laundering taking place through illegal channels, the State Bank of Pakistan should still be appreciated for strengthening the country’s defences against those determined of infecting its economy with criminal money. Pakistan has long continued to exist as a haven for money-launderers largely because of its laws that allow white-collar criminals to roam free. A widespread immunity of these actors against all relevant authorities continues to remit over nine billion dollars outside Pakistan every year, according to a statement from the former governor of the State Bank. Various legal lacunas in the country’s laws do not allow the judicial commission from establishing anything against those accused in the financial scandals. The Ayyan Ali saga illustrates another endearing aspect of all investigations targeted to kerb such crimes. While a very small number of high-profile cases do manage to attract public criticism — mainly thanks to the uproar on media — the authorities are still not able to successfully clamp down on money-laundered and tax evaders. This is perhaps why the government has not yet ascertained accurate estimates of the money being laundered in the country despite the introduction of much-touted financial reforms. In order to get rid of the ever-persistent circulation of illegal money, Pakistan needs a comprehensive set of legislations; that, too on an immediate basis.
