ISLAMABAD: The government modified the Customs Act 1969 through Finance Bill 2024–25 to give the Directorate General of Trade-Based Money Laundering (TBML) official legal support, in accordance with the recommendations set forth by the Financial Action Task Force (FATF).
A new section called “3CCE” for “Directorate General of Trade-Based Money Laundering” is being added in accordance with the planned modification to the Customs Act.
“TBML will be composed of a director general and as many other directors, assistant directors, deputy directors, and directors as the board may designate by official gazette notification,” the measure stated.
The FATF has identified three primary means by which money is moved by terrorist organizations and criminal organizations to conceal its source and be incorporated into the formal economy.
The Financial Action Task Force (FATF) has identified three primary means via which money is moved by terrorist organizations and criminal organizations to conceal its source and enter the legitimate economy.
The first is by using the financial system; the second is by physically moving money (for example, by hiring cash couriers); and the third is by physically moving products via the trading system.
The first two of these techniques have received a lot of attention from the Financial Action Task Force in recent years. In contrast, not much emphasis has been placed on the potential for misuse of the international commerce system. The FATF research states that there are numerous dangers and weaknesses in the international commerce system that can be taken advantage of by criminal organizations.
