The International Monetary Fund (IMF) has called on Pakistan to adopt effective measures to curb trade-based money laundering.
It urged monitoring of lawyers, law firms, and traders dealing in gold and silver, while also emphasising the identification of beneficial owners. A target was set to implement an electronic system to ensure transparency in government procurement.
These demands emerged during the second economic review negotiations for the third tranche of $1.2 billion from the international lender. The IMF sought a report from Pakistan outlining the risks and potential consequences of trade-based money laundering. It pressed for strict oversight of non-financial businesses and professional services. The Fund also underscored the need for transparency in the sale of redundant government assets.
According to sources, the IMF listed several business sectors for monitoring, including lawyers, law firms, accountants, auditors and real estate agents. The scope of oversight also covers individuals and entities involved in the trade of gold, silver, gemstones and other precious metals. The monitoring extends to those registering new companies and managing shareholders and directors.
The IMF has urged the government to implement an electronic procurement system to improve transparency in public purchases and sales. The sale or disposal of state-owned assets should also follow transparent procedures. The proposed e-procurement system would include online tender publication and bid evaluation. Reduced human involvement in procurement processes could help limit corruption. This would assist in identifying actual owners and beneficiaries, including contractors.
