ISLAMABAD: The Islamabad High Court (IHC) on Saturday declared it illegal to frame money laundering charges against anyone concealing assets or not declaring them.
The court dismissed a case of non-declaration of assets and concealment that had been filed under the Money Laundering Act, against a businessman.
IHC Chief Justice Athar Minallah, in a five-page judgment, ruled that the Money Laundering Act would not apply if there is no evidence to prove that the assets were created with money gained through criminal means.
The Federal Board of Revenue could not prove money laundering in the lawsuit, and the court maintained that the Money Laundering Act of 2010 was enacted to curb money laundering and terrorist financing. Section 4 of the Act declared money laundering a punishable offense.
A first information report (FIR) against the businessman was initially registered on June 29, 2021, alleging non-declaration and concealment of assets.
The court observed that a case against the petitioner was registered over concealing assets, therefore money laundering case against the petitioner is illegal.
The court while quashing FIR under illegal transfer of money ordered that the case should be filed under concerned clauses against undeclared assets.
“Making a criminal case and alleging money laundering against the petitioner is an abuse of power and illegal,” the court stated.
The high court’s decision comes shortly before a special court (Central-I) is set to hear Prime Minister Shehbaz Sharif’s money laundering case on April 27, after granting the premier and his son interim bail.
