Regulatory Alerts2020-06-18 | Circular No.3Guidelines for Financial Institutions on Tax Amnesty Scheme for Construction Sector
The Federal Government has introduced a tax amnesty scheme for the construction sector via the Tax Laws (Amendment) Ordinance No. 1 of 2020. Financial Monitoring Unit issued these guidelines to prevent the misuse of the scheme for laundering criminal proceeds or financing terrorism. All reporting entities are mandated to ensure strict compliance with these Anti-Money Laundering and Countering Financing of Terrorism requirements.
FINANCIAL MONITORING UNIT (FMU) GOVERNMENT OF PAKISTAN 2ND FLOOR, SBP MAIN BUILDING, I.I. CHUNDRIGAR ROAD, KARACHI 4400 FMU-Circular No. 03 of 2020 June 18, 2020 The Presidents/ Chief Executives, All Reporting Entities Dear Sirs/Madams, Guidelines for Financial Institutions on Tax Amnesty Scheme for Construction Sector Recently, the Federal Government has announced a tax amnesty scheme for the construction sector through amendments in the Income Tax Ordinance, 2001 by promulgating “The Tax Laws (Amendment) Ordinance No.1 of 2020”. In order to address and mitigate potential abuse of the Scheme for the purpose of moving funds derived from criminal activities, attached guidelines are being provided to ensure meticulous compliance of the legal requirements relating to Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT). 2. The compliance of these guidelines must be ensured by all the reporting entities. Encl: Guidelines for Financial Institutions on Tax Amnesty Scheme for Construction Sector Yours truly Sd/ (Sumera Baloch) Additional Director Copy to: The Governor, State Bank of Pakistan (SBP) The Chairman, Securities and Exchange Commission of Pakistan (SECP)