FBR establishes Directorate of Cross Border Currency Movement to check money laundering, forex smuggling

KARACHI: In order to lake appropriate steps for monitoring of cross border currency movement and to develop a robust mechanism for data analysis and information sharing with other agencies, the Federal Board of Revenue (FBR) has order the establishment of Directorate of Cross Border Currency Movement (CBCM) under the administrative control of the Directorate General of Intelligence and Investigation-Customs.[the_ad id=”31605″]The directorate will be headed by a Director (BS-20) and assisted by as many Additional Directors, Assistant/Deputy Directors and support staff as deemed necessary. Abdul Waheed Marwat, a PCS/BS-19 officer, presently posted as Additional Director Customs Intelligence & Investigation Rawalpindi is transferred and posted as Director (OPS) of Directorate of Cross Border Currency Movement.

The newy formed Directorate of Cross Border Currency Movement will maintain a data base of currency seizures and updated. Each Model Customs Collectorate (MCC) and Regional Directorate of l&I-Customs shall report on the prescribed format  information about currency seizures made within their jurisdiction on fortnightly basis to the Directorate.

The Directorate shall share the data of currency seizures with the FBR and Financial Monitoring Unit (FMU) on monthly basis or as and when required.

Directorate shall maintain and update database containing information of suspicious transactions report (STRs) received from the FMU. The Directorate shall further disseminate the STRs so received from the FMU to the concerned Regional Directorate I&I Customs for inquiry/investigation. Each Regional Directorate shall maintain record of STRs received and appoint officer to carry out investigations in light of the approved plan. Progress on the investigation conducted be communicated to the Directorate for onward submission to the FMU.

The Directorate shall devise a mechanism  for information sharing with other LEAs on real time as well as on routine basis

A Data and Risk Analysis (DRA) cell for conducting regular analysis of data pertaining to currency seizures, currency declarations, banking transactions, benami accounts/transactions etc and undertaking research for enhancement of measures to combat money laundering shall also be maintained under the Directorate.

The Cell shall maintain proper account of all analyses and research carried out, assist the investigating officers in financial investigations and submit the outcome thereof to the Director on fortnightly basis.

The Directorate shall process requests for mutual assistance/cooperation received from foreign countries. Any request for international cooperation initiated by the Directorate shall be sent to the Chief (IC)- Customs-FBR for onward submission to the concerned foreign agency/ country.

The Directorate shall also set up a TBML Cell for analysis of import/export data and investigation in cases of Trade Based Money Laundering emanating from it.

The Directorate shall share information about currency seizures, currency declarations, STRs, prosecutions, arrests, acquittals convictions, attachments, forfeitures etc with the FMU and FBR on monthly basis. The Directorate shall ensure that updated details of each case whether quasi-judicial or criminal are available on demand at any given point of time.

The Directorate shall develop automated systems for storage, analysis and retrieval of relevant data. The reporting mechanism will also be reviewed on regular basis for further improvement.

The Directorate shall apply and cause to be applied, strict controls and safeguards to ensure that the information exchanged is used only in a authorized and confidential manner. The information shall be confidential subject to official secrecy and protected by the same confidentiality as is provided by the governing legislation of the Requesting Agency for similar information from its internal sources.

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