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Part II
The nature and process of money-laundering
The case of money-laundering, especially in Pakistan, is no different from the ‘crime’ of tax-evasion; here too the government itself is an accomplice. “The ugly face of black money emerges in the corridors of power, political as well as administrative.” [Dr. Ikramul Haq, Money laundering facilitated by tax laws] In fact, “Pakistan has been the worst victim of money-launderers as during the last 30 years, the successive governments showed an extremely benign attitude toward corruption, drug trafficking and tax evasion.” [Dr. Ikramul Haq]
The government, on the one hand, introduced laws to counter money-laundering, and, on the other, floated schemes to allow the whitening of black money. All the same, various governments successively introduced novel schemes to declare untaxed and illegal money. They used this ‘weapon’ to win political rivals, to please their allies and to strengthen their rule. “. . . why the government has floated schemes, which provide an easy way for whitening black money, is the fact that many individuals belonging to the party in power having amassed lot of money need to whiten it. In this backdrop such money laundering schemes come handy to the members of the ruling party and their associates.” [Ijaz Hussain, Legal Control of Corruption and Money Laundering in Pakistan]
Also, “CBR (Central Board of Revenue; responsible for the collection of federal taxes) has never bothered to unearth laundered money, rather always joined hands with the tax evaders and money launderers by providing them unprecedented concessional schemes to whiten their ill-gotten wealth. These schemes were announced by the governments on the rec ...