The Lahore High Court has decided that tax evaders cannot escape criminalization and confiscation of proceeds of crime under Anti-Money Laundering Act 2010.
In a landmark judgement on the offence of money laundering (ML) based on tax evasion as a predicate offence, the Lahore High Court in a writ petition and more than 180 connected writ petitions issued a detailed Judgment on Sept 10 in favor of FBR.
The following were four categories of writ petitions. A) The petitioners challenged filing of FIRs under Anti-money laundering Act 2010 by the three regional Directorates (Lahore, Faisalabad & Multan) of Directorate General Intelligence & Investigations Inland Revenue. The Honorable Court dismissed such writ petitions. B) The petitioners challenged the summons issued under section 160 of the CrPc. The Honorable Court dismissed such writ petitions. C) The petitioners challenged the call up notices (preliminary inquiry) duly supported with detailed reasons. The Honorable Court dismissed such writ petitions. D) The petitioners challenged the call up notices which were not duly supported with detailed reasons. The Honorable Lahore High Court allowed such writ petitions, however, it held that the record/evidence/information already collected during investigation can be utilized in case fresh notices are issued.
Overall, the court scrutinized the whole AML regime; upheld the vires of notifications issued by the Federal Government and the Standard Operating Procedures (SOPs) issued by the Directorate General I&I IR.
