ISLAMABAD: The Financial Action Task Force (FATF) has demanded a second amendment to Pakistan’s Anti-Money Laundering Act, 2010,that financial matters will have to be reported, which has created a new hurdle for Pakistani institutions.
Pakistani institutions are facing a new challenge in implementing the terms of the Financial Action Task Force. The FATF has called for a second amendment to the Anti-Money Laundering Act 2010, stipulating that the Fourth Schedule be included.
Lawyers are also being included in the Fourth Schedule, and a new challenge will be created for lawyers who serve as financial advisers or as tax advisors.
The most difficult requirement of the FATF is that the financial affairs lawyers have to inform their clients about the suspicious transaction, for which they have to submit the Suspected Transaction Report (STR).
In the Fourth Schedule, self-regulatory bodies such as bar councils will regulate financial and tax lawyers. Lawyers will face severe action if their clients do not report suspicious transactions and their licenses can even be revoked.
In light of the Fourth Schedule, the relevant Bar Council will be required to make rules and regulations in this regard. The law will not apply to the services of lawyers for criminal cases.
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