INVESTIGATIONS of predicate offences can be more complex than solving mystery puzzles. Predicate offences are camouflaged in the darkness of a criminal environment. For example, tax evasion can be considered a predicate offence as its unlawful profits can lead to money laundering and the financing of terrorism (ML/FT).
Terrorism plays havoc with human lives and economies. It is a complex phenomenon whose roots are embedded in the political, religious, and economic interests of certain mafias. Each time the state tries to clip its wings through kinetic measures, terrorism manages to regrow them, as demonstrated in its recent resurgence, which, apart from harming law and order and the economy, has fractured the country’s international image.
Terrorist organisations operate in a very systematic fashion, covertly conducting their operations through money laundering and financing terrorist activities by taking advantage of the absence of a legal framework that could round up, investigate and prosecute the perpetrators of heinous activities. In an increasingly interconnected world, the harm done by these criminal groups is global, affecting the integrity and stability of the entire region and beyond.
The justice system lacks the tools to enable effective prosecutions.
UNSC Resolutions 1617, 2253, and 2368 have made it binding on UN member states to comply with the recommendations of the Financial Action Task Force, which was founded by the G7 countries and given the mandate to set standards to protect the global financial system from money laundering and terrorist financing. The FATF has classified 21 offences as predicate offences. These include terrorism, murder, arms trafficking, tax fraud, racketeering, kidnapping, extortion, smuggling, counterfeiting, forgery, robbery, corruption, bribery, etc. Each crime, when investigated thoroughly, would prove to be merely the tip of the ML/FT iceberg.
When Pakistan was put on the ‘grey list’, the FATF required it to ban militant groups and freeze their bank accounts. It proved a blessing in disguise for Pakistan, as it provided an enabling environment to the state to enhance its anti-money laundering and counter-financing of terrorism efforts, with the help of key institutions, including the FBR, SECP, FIA, State Bank, the ministries of finance and foreign affairs, and the security intelligence agencies.
In turn, their efforts were boosted by legislation such as the Anti-Money Laundering Act, 2010, and the Benami Transactions (Prohibition) Act, 2017, as well as the establishment of the National Counter-Terrorism Authority and the Directorate General of Designated Non-Financial Businesses and Professions, and a National Action Plan, which, together, helped Pakistan to eventually get off the ‘grey list’.
Though the law-enforcement agencies have been empowered through statutes to take kinetic measures to address the issue, the judicial system, which is typically defined as the ‘criminal justice system’, lacks the tools to enable effective financial investigations and prosecutions of predicate offences. The very low conviction rate points to the mild deterrence effect of the justice system, especially against terror-financing activities — this factor itself constitutes several missing pieces of the mystery puzzle. Well-coordinated and determined efforts are required to fulfil international commitments to ensuring effective investigations and prosecutions of predicate offences.
Investigation/ prosecution agencies including NAB, FIA, ANF, the Directorate General of Intelligence and Investigation — Inland Revenue, Customs, FBR and the provincial CTDs should conduct joint investigations and have swift data-sharing protocols under the umbrella of the Financial Monitoring Unit. Stronger inter-agen-cy cooperation and specialised trainings of law enforcers, civil servants and judges could improve the rate of convictions.
A strategic approach to the issue must include non-kinetic measures, such as revisiting ideological motivations by promoting the rule of law, democracy, tolerance, and inclusivity. The administration of fiscal justice and poverty alleviation through social protection programmes, education and social awareness through the media, as well as the documentation of the economy, is the cornerstone of this roadmap.
Last but not least, religious scholars must be engaged to communicate how sabotage is frowned upon by religion, while technical skills studies must be introduced in the madressahs. While we have to create a just and equitable environment for progress and prosperity by addressing ethnic tensions, separatist sentiments, and religious extremism through sustained dialogue with the relevant stakeholder, we must also put in extra effort to resolve domestic and regional political disputes.
The writer is a civil servant.
X: @RashidJRana
Published in Dawn, August 28th, 2024
