New bill seeks to enhance punishments in terror financing cases

Govt to provide legal base for helping other countries in investigations

ISLAMABAD:

The government has proposed legal changes for the third time in nine months aimed at increasing punishment in terror financing cases and providing a legal base to help other countries in terrorism-related investigations in order to meet the Financial Action Task Force (FATF) requirements.

Over half a dozen amendments are recommended in the Anti-Terrorism Act (ATA) of 1997 that also seeks to promptly and effectively investigate terror financing cases and ensure strict punishments, according to the draft of the bill approved by the federal cabinet on Tuesday.

The draft proposes removal of restriction of court’s permission for seeking financial information from banks and recommends such powers for the deputy inspector general of the police to ensure a swift investigation into the terror financing cases.

It is the third draft bill that the government has proposed since November last year. Earlier, two bills were also introduced to amend the ATA 1997. The first was introduced in November last year and remained unapproved, while the second ATA amendment bill was introduced in January 2020.

The November 2019 ATA amendment bill was termed draconian by the opposition parties due of the vast powers that were proposed to be given to the investigation agencies. The term of “economic terrorism” was introduced under the 2019 bill.

Under the first bill there was also a proposal to detain a person for four months on suspicion of terror financing, with an option to further extend the detention to four more months. The detention powers have been proposed for the interior and home secretaries.

Pakistan is in process of amending eight laws to satisfy the FATF – the global body that is working to curb money laundering and countering terror financing – which is likely to meet in October to review Islamabad’s case. Pakistan has been placed in grey list since June 2018 but has won multiple extensions to fully implement the 27-point action plan to exit the list.

National Assembly Speaker Asad Qaiser has set up a 24-member Parliamentary Committee for Legislative Business to deliberate on the Anti-Terrorism Amendment Bill 2020, particularly its first draft, and the United Nations (Security Council) Amendment Bill 2020. The government is trying to get these bills passed before the Eidul Azha holidays.

The FATF has identified legal deficiencies in the Monitoring and Evaluation Report (MER) of Pakistan. A new section has been proposed to be inserted in the 1997 law for providing mutual legal assistance (MLA) in terrorism matters, terror financing and predicate offences.

Absence of legal cover for providing information under the MLA has remained a hindrance in international cooperation in such cases. According to the proposed Section 21N, “The matters relating to international cooperation in terrorism and matters ancillary thereto will be dealt in accordance with the laws for the time being in force”.

The government has also stressed the need for matching penalties, fines and restrictions for the actions and offences and for providing the necessary legal powers to the law-enforcement agencies to ensure speedy trial and disposal of cases, according to the summary of the bill prepared by the interior ministry.

The MER had recommended amendment to legislation to cover property of corresponding value and ensure that the prosecutors and the courts are aware of the availability of such remedies. In order to meet the condition, the government inserts a new clause which states that “the property referred to in the sub sections 2 to 6 in this section may also include the property of corresponding value”.

The sub sections authorise the forfeiture of those properties that were under the possession of the person at the time he committed an act of terrorism or provided the facilitation. The forfeiture of the property of the equivalent value is necessary in case of sale or disposal of actual case property as being proceeds of the crime, according to the summary sent to the cabinet.

The government has also proposed the abolition of a separate legal clause related to fines on fundraising by the proscribed organisations. Now, it has been suggested that the penalties and punishments for proscribed organisations will be the same currently meant for all terrorist organisations.

If the amendment is approved by parliament, the punishment for proscribed organisations on fundraising will also be minimum 5 years and maximum 10 years as against the current punishment limit of one to five years.

The government has proposed that “no bank or financial institution will provide loan or financial support to a proscribed person or issue credit cards to such persons. The armed licenses, if already issued, shall be deemed cancelled and the arms shall be deposited in the nearest police station. In future, no fresh arms licenses will be issued to proscribed persons.

The scope of the ATA is proposed to be extended to the financing of travel for any individual to another country for the purpose of terrorism. This means a person who will buy an air ticket for a terrorist will be punished under the ATA.

With a view to addressing the FATF concerns, the fine limit on fundraising for terror activities, use of property for terrorism, money laundering, non-disclosure of information to police has been increased to Rs25 million.

In order to meet the UNSC resolution 1452, the government has proposed legal cover for providing money for extraordinary expenses, including expenses for foodstuffs, rent, medical treatment, taxes, insurance premium and public utility charges by proscribed organisations and persons.

The authorities had also proposed to enhance powers of the joint investigation teams (JITs). The JIT may co-opt any person from any federal or provincial institution or department as it deems appropriate for investigation, according to an amendment proposed in the Section 19 of the ATA.

At present, the composition of the JIT is limited only to five members and that also from police, intelligence agencies, armed forces and civil armed forces. Also, the JITs investigating financing of terrorism, require cooperation from key federal institutions for the purpose of tracking money trail.

At present, the powers to call information from a financial institution is either with the JIT or the police have to seek permission of the anti-terrorism court before asking for such information. Now, through an amendment to the Section 21EE, the government has proposed that such information can be obtained from any bank or financial institution “with the permission of deputy inspector general” of police.

The government is of the view that timely availability of the information was pivotal to investigating the financing of terrorism and the court’s permission may cause delays.