108TH INTERNATIONAL SEMINAR PARTICIPANTS’ PAPERS

CURRENT PROBLEMS IN THE COMBAT OF TRANSNATIONAL ORGANIZED CRIME ( PERSPECTIVE)

Tahir Anwar Pasha*

I. INTRODUCTION spending rules and subsequent audits. Similarly, the proceeds of crime are not “Organized Crime”, initially easily accessible to law officers on various synonymous to a certain Italian counts. Criminals use intricate phenomena like ‘Mafia’, ‘Camorra’ etc., has methodologies to camouflage the proceeds now extended to cover the whole world and of crime and there are problems of is the most dificult challenge to criminal jurisdiction across national borders. Under justice policies. Criminals no longer live these circumstances it becomes almost an within the parameters of national impossible task to prosecute and punish boundaries. It facilitates criminals to the offenders who operate transnationally. operate transnationally, both in terms of The immunity so provided to crime finance and their own security. They don’t operators is fast becoming the vehicle of a encounter the difficulties - which the law multi-fold increase in the transnational enforcers face - when crossing national organized crime. This has been felt by most borders for ulterior motives. of the developed (and developing) countries and the issue of transnational organized The recent decades have seen an crime began to echo in international information explosion which has reduced forums. Think tanks remained busy for the world into a global village. Internet many million of hours to overcome the operations and satellite communications difficulties in combatting transnational are biased in favour of criminals rather crime. Discussions, Seminars Workshops, than the proponents of the criminal justice Symposiums, Conventions, Treaties etc. system. Just a delay of hours - which is not were designed to construct dams on the unusual in official channels - can create a gushing flow of illicit channels. Some of gap of thousands of miles and man hours these efforts, though slow, created an in the efforts to bring criminals to justice. inpact and the desired results, but most of them remaind ineffective due to technology Law enforcers always fall behind in advances (of which the criminals are better matching the wealth of crime syndicates. availers). It is these riches which infact persuade the talented unemployed to keep on joining It is in this context that the present shady activities. They obviously get a paper has been written, to take stock of the greater benefit, with less effort than they problems which the world is still facing in could through legitimate sources. Crime the combat of transnational offenders. In organizers do not have to pass through the this paper, I shall deal with issues from my cumbersome procedural requirements of own country’s point of view on the following demands, budgets, requisitions, sanctions, type of transnational crime:

* Deputy Inspector General of Police, Central Police (a) Illicit drug trafficking. Office in Lahore, Pakistan. (b) Illicit firearms trafficking.

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(c) Smuggling of illegal migrants. stringent laws and measures taken both (d)Illicit trafficking in women and nationally and internationally, this children. problem has almost come to a halt in (e) Illicit trafficking in stolen motor Pakistan. There were periods in the vehicles. previous years when zero illegal (f) Money laundering. immigration was recorded. (g) Transnational economic crimes (e.g., large-scale fraud targeted at Illicit trafficking in women and children corporations or organizations, credit is also not much of a problem in Pakistan. card fraud, counterfeit currency of There was some illicit traffic from a financial cheques, fraud by way of neighbouring region and one far eastern manipulating computer systems or country of women for prostitution other high technology equipment). (disguised at house maids). Similarly there was some trade of children from the As far as Pakistan is concerned, illicit southern part of Punjab (the biggest drug trafficking and resultant money province of Pakistan) to some middle laundering are the most relevent issues. eastern countries for the purpose of camel The other types of crime mentioned above races. Although the immigration was legal are either not prevalent nationally - like and was with the consent of the parents or large scale frauds targeted at corporations guardians, it was still considered illicit on or organizations, credit card fraud, humanitarian grounds. Both these issues counterfeit currency or financial cheques, have since died down due to effective fraud by manipulating computer systems checks by the law enforcement agencies of etc. - or if they are prevailing, they are not Pakistan and elsewhere. of much concern. Transnational trade of stolen vehicles is There may be sporadic cases of illicit a recent phenomena as far as Pakistan is firearms trafficking in Pakistan, but no concerned. Our western borders are organized gangs dealing in such nefarious inhabited by tribal groups on both sides. activities have come to notice. However, The area is called, in the local language, there was the fallout of the Afghan war, “Illaqa Ghair”, meaning, the land of aliens. when Afghan refugees sneaked into The tribes traditionally don’t acknowledge Pakistan’s tribal area along with their the international boundaries. Their free arms, some of which were lethal and high movement provides opportunities to tech, for barter trade. This issue has come establish safe havens - on the other side of to a lower level after the war turned into the border - for contraband items. These an internal civil war, and the Pakistan havens have become smuggling rendezvous border side of came under the points because of the restrictions or heavy occupation of the Talibans. duties imposed on certain items, which includes vehicles. The vehicles are There was a time when money values transported to settled areas of Pakistan had changed in Pakistan - like many other illegally and plied on roads with fictitious developing nations - and most of the skilled/ number plates. Similary, vehicles stolen unskilled workers sought employment from the settled areas of Pakistan - mostly abroad in move affluent countries. A luxury cars & vans - are transported to mushrooming growth of gangs dealing in tribal areas from where they are sold at illegal immigrants was noticed. These dirt cheap prices or returned to the actual gangs operated transnationally. With owner after receiving “handling charges”,

148 108TH INTERNATIONAL SEMINAR PARTICIPANTS’ PAPERS which often amount to millions of rupees. convert opium into . This is This problem is almost a localized issue how heroin - discovered back in 1898 which can only technically be termed as - was introduced to this part of the transnational. world in 1980.

This leaves us with the actual problem As against 800,000 square kilometers of area for Pakistan i.e. drug trafficking and territory, opium production is confined to the resultant money laundering, which only a few isolated pockets of Pakistan. The consumes most of the energy of law area under cultivation has been reduced enforcment in Pakistan. from 32,200 hectares in 1978, to 5215 in 1995; and poppy production from an II. DRUG TRAFFICKING: estimated 800 tons in 1978-79, to 109.5 CURRENT SITUATION tons in 1995. In 1996 opium production was Drugs have remained a social menace, further reduced to only 2.8 metric tons. (in some form or other) since the time Pakistan is thus no longer a central immemorial. We can not overlook the producer country. It is thus clear that a very opium addiction in China, which paved way negligible area of Pakistan territory was for the revolution. The Indian subcontinent connected with narcotics in the past. Since too, has remained in the spiral of addiction. 1996 Pakistan has ceased to be a producer There is always a growing demand which, contry. as per economic theory, creates the resultant supply. In this regard the The war in Afghanistan led to porous situation in Pakistan is no different. borders with the country, resulting in spread of the narco-guncultre. With no A. Pakistan a Victim - not a Source heroin addicts in 1979, Pakistan is now Country burdened with 1.52 million heroin addicts. At the time of independence in 1947, Pakistan needs anything between 600 or Pakistan was a unable to supply its own 800 tons of poppy or 60 to 80 tons of heroin opium addicts, therefore opium was per year to feed its own drug addicts. We imported from until 1956. After 1956, are, now therefore, net importers not a few areas were allowed to produce exporters of heroin. ‘licensed opium’ under strict controls. The numer of opium addicts never reached a B. Alarming Domestic Consumption significant mark. The production of On the consumption side of heroin licensed opium continued until 1979, when Pakistan is badly effected. To know the two very important developments took actual ground situation, a “National place: Survey on Drug Abuse” was conducted in 1993. The survey dawned facts which (a) The Islamic revolution of Iran in created panic among sociologists. The February 1979; following are the salient features of the (b) The promulgation of the Islamic survey: Hudood laws in Pakistan which totally banned opium production. (a) There are 3.1 million drug users (0.77 Farmers were therefore left with million in 1988). huge stockpiles - about 800 tons of (b) Most popular drug is heroin, which opium - and did not know what to do is used by 1.52 million (51%). with them At this point, some (c) Second most popular drug is hashish, Westerners taught them how to used by 0.89 million (29.5%)

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(d) Proportion of drug users: subsistence. Cultivantion of poppy was also Urban - 52% encouraged by the then colonial Rural - 48% government for export to China. Still the (e) 71.5% of drug users were under 35 area constitutes a very small fraction of the years of age with the highest “” of South West Asia. For proportion in the 26-30 year age centuries, the tribal area was the group. legitimate supplier of opium until the (f) Almost 60% were literate and a Islamic Hadood Laws were introduced in similar percentage were employed. 1979. Evolution of heroin after this (due to (g) Among occupational categories, the reasons already explained ) reduced the frequency of drug use was highest volume of opium but increased its price ten (53.3%) for those in skilled and times. As heroin production took less hiding unskilled labour categories, followed space than crops, clandestine operations by sales (14.1%), students (11.4%) became easy and resulted in handsome and agriculture (10.9%). returns. Profit margins had a cumulative (h)The average monthly personal effect with the increase of distance from income of drug users was Rs. 3054/- the source point. Price differentials sky (US $ 28). rocketed when the drug reached the (i) 97.2% drug users were male. 2.98% international market. were female. (j) Over time, the drug abuse pattern Price difference in the international has changed in favour of heroin market can be well illustrated by the fact instead of hashish and other that the heroin which costs Rs. 70,000/-to traditional drugs. 1,00,000 (USD $ 1550 to 2200) per kg in (k) Sources of introduction to drugs were Pakistan, is sold for over USD $100,000 in mostly attributed to friends in 68.6%, the streets of some developed western and to casual acquaintances or drug countries. The Criminal Intelligence pushers in 15%, of the cases. Family Directorate of Royal Canadian Mounted members made up another 9% of the Police have carried out an analysis of the cases. international prices of illicit drugs in 1996 for comparative reference. No doubt the dark clouds of drug menace are surrounding Pakistan, but there is a The huge difference in international and thin silver lining also. About 60% of heroin local market prices resulted in billions of addicts expressed desire to quit by having dollars in illicit export trade. This has not recourse to treatment centres. Also, the only created a dearth of drugs inside our increase in the number of drug addicts was country, but also has inflated the domestic only 7% during the period 1988-93 while it spending on drugs. A UNDCP (United was 12% during 1983-88. Nation Drug Control Programme) study in 1994 estimated consumer expenditure on C. Economic Factors leading to heroin in Pakistan to be in the range of Rs. Transnational Traffic 35 billion (US $ 1.2 billion) per year. This Traditionally poppy cultivation is taken volume of drug trade has logically created as a cash crop - like other cash crops and underground parallel economy with its elsewhere - in the tribal areas and in own supply and demand mechanism, and Afghanistan. This used to be the bread and its own style of corruption. butter, of the smaller land holders who, in the rugged terrains, had nothing else for

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Pakistan has also been affected by what health of financial markets and even local is known as the balloon effect. If drug economics. According to various estimates, production is reduced in a given area, the not more than 5% to 15% of narcotic drugs impact of continued demand inevitably and psychotropic substances are ensures that greater production occurs in interdicted by the law enforcement a neighbouring area. Thus while Pakistan agencies of the world. It is thus obvious that has been able to reduce its output of opium the drug interdiction enforcement strategy considerably, increased production in has failed to produce the desired results. Afghanistan (2300 tons in 1996 - UNDCP It is estimated that 90% of narcotics slip estimate) due to the prevalent political through the net of enforcement agencies, situation there has served to effectively and reach the drug market to meet the negate whatever progress we have been consumers demand. able to achieve. The impact to the balloon effect has clearly shown that efforts at III. INTERNATIONAL AWARENESS solving the narcotics problem must also be AND COMBATTING STRATEGIES initiated at regional levels; as increased Due to the transnational nature of drug opium production and heroin laboratories trafficking, it would be improper to think across the borders in Afghanistan have that it could be fought single handedly by contributed significantly to the supply of any nation, no matter how developed it is. opium and heroin in Pakistan. The international community as a whole has to embark on a crusade against drugs. Drug production in Afghanistan is not The United Nations, being the sole only meeting the domestic demand of reqresentative institution in this respect Pakistan but it is also forming the basis of has come forward on this issue due to the an international supply route using continuing drug menace. Drug trafficking, Pakistan territory as a conduit. The most coupled with the resultant money recent trend of international drug traffic laundering, forms the major portion of is that Central Asian States are being used organized crime transnationally. Efforts for the transportation of drugs to Europe/ made to curb organized crime are, U.S.. This fact is acknowledged by the therefore, mainly targeted at these two INCB report for 1995 and 1996, and the specialized crimes. The seventh congress Conference of 37 countries in Europe in on the Prevention of Crime and the February, 1995. Given the stringent Treatmet of Offenders, held in Milan in measures adopted by the Government of 1985, adopted the “Milan Plan of Action”. Pakistan, Pakistan may soon cease to be a Key statements in that plan of action country utilized as a major conduit for the included: export of drugs. “Crime is a major problem of national and, in some cases, international According to one estimate, about USD dimensions. Certain forms of crime can $1 trillion is involved in the global narco- hamper the political, economic, social and business, out of which at least USD $ 200 cultural development of peoples and billion is the share of the United States of threaten human rights, fundamental America alone. This huge volume of money freedoms, and peace, stability and security. dwarfs any thing earned by legitimate In certain cases it demands a concerted means, leading the former U.N. Secretary response from the community of nations in General to say before the General reducing the opportunities to commit crime Assembly, “Drugs are the most profitable and address the relevant socio-economic commodity in the world today” affecting the

151 RESOURCE MATERIAL SERIES No. 54 factors, such as poverty, inequality and obligations on signatory states (Pakistan unemployment. The universal forum of the included as a signatory to it) to ensure that United Nations has a significant role to persons committing offenses could not play and its contribution to multilateral escape justice. It required that each party cooperation in this field should be made make conduct proscribed by the more affective”. Convention a criminal offense carrying an and: adequate penalty, and to try a person for “Interested Governments should such an offence committed outside cooperate bilaterally and multilaterally, to territorial jurisdiction where the offender the fullest extent possible, with a view to is found in that country’s territory and strengthening crime prevention measures there is no extradition. and the criminal justice process by undertaking action-oriented programmes 1990 also saw the production of the final and projects”. report of the Financial Action Task Force on Money Laundering set up by the Heads In furtherance of the objectives of the of State or Governments of the seven major Milan Plan of Action, in 1990 the eighth industrial nations (the G7), in which 8 congress adopted four practically-oriented other nations were invited to participate. bilateral model treaties designed to assist Another milestone was the adoption, by a states in building the necessary framework plenipotentiaries conference on 20 for increased co-operation. Those treaties, December 1988, of the United Nations subsequently adopted by the United Convention, coming into force on 11 Nations General Assembly, are: the Model November 1990. The convention has Treaty on the Transfer of Supervision of broken new ground in number of respects. Offenders Who Have Been Conditionally First, it creates an obligation on the part Sentenced or Conditionally Released; the of all signatories (including Pakistan) to Model Treaty on the Transfer of criminalise conduct constituting what may Proceedings in Criminal Matters; the be loosely referred to as “money Model Treaty on Extradition; and the laundering” in relation to narcotics activity. Model Treaty on Mutual Assistance in This facilitates international cooperation Criminal Matters. which, due to the application of the dual criminality principle, is presently The origins of international co-operation hampered by the fact that many countries or mutual assistance in the suppression of do not at present criminalise such conduct. crime date back to the beginnings of formal diplomacy. In what has been described as Secondly, Article 6 dealing with the oldest document in diplomatic history, extradition, imposes obligations on provision was made for the return of countries, interalia, to conclude bilateral criminals in a peace treaty entered into in and mltilateral agreements to carry out or (Circa 1280 BC) by Rameses II of Egypt to enhance the effectiveness of extradition and Prince Hattusili III of the Hittites. The and, in relation to the conduct proscribed need for mutual assistance, particularly in by the Convention, to expedite extradition the granting of help in the provision of procedures and to simplify the attendant evidence to facilitate investigation and evidentiary requirements. prosecution, has been recognazed for some time by the international community. For Finally, Article 5 deals comprehensively example, the Single Convention on with identifying, tracing freezing and Narcotic Drugs 1961 imposed a number of confiscating proceeds, or instrumentalities,

152 108TH INTERNATIONAL SEMINAR PARTICIPANTS’ PAPERS of conduct proscribed by the Convention (subsequently enacted in 1997, the and obliges countries to adopt such Pakistan Narcotics Control Board and Anti measures as are necessary to enable them Narcotics Task Force were merged into one to fulfill those obligations, both nationally Anti-Narcotics Force for move effective and on behalf of other signatory states. It operation. also adopts mutual assistance provisions for requests for action in relation to the A. Salient Features of New proceeds of crime, and obliges countries to Legislation seek to conclude bilateral and multilateral treaties, agreements or arrangements to Before independence Pakistan inherited enhance the effectiveness of international the Opium Act 1878 and Dangerous Drug co-operation in relation to the tracing, Act 1930 which covered most of the drug freezing and confiscating of proceeds of related issues relevant to that time. crime. The Convention also expressly However with the passage of time, these prohibits a refusal of assistance based on laws gradually became obsolete because of bank secrecy. The principal reason for its the new dimensions that emerged in drug emergence is the recognition that financial trade. With the introduction of the Customs profit is the essential motivation of Act of 1969 and Prevention of Smuggling organized crime and that an effective Act 1977, the unauthorized flow of drugs countermeasure is the interdicting of such was somewhat controlled. To enhance profits, which would otherwise be re- punishment, Islamic laws were enacted by invested in further criminal enterprises. So the Prohibition (Enforcement of Hadd) seen, it is a significant deterrent and crime Order 1979. Enactment of the Control of control mechanism. Furthermore, some Narcotic Substances Act 1997 (CNSA), countries utilize confiscate proceeds to being a comprehensive law, covered most strengthen the law enforcement armory of the lacunas which had developed in the and to finance, for example, rehabilitation existing laws due to technological and programmes for drug addicts. Pakistan has information based advances. Very briefly, already established for this purpose, a the following are the salient features of the National Fund for control of Drug Abuse CNSA: in accordance with the provision of the newly promulgated Control of Narcotics (a) Progressive punishments from two Substances Act, 1997. years to death have been prescribed. For the first time, the intensity of IV. LEGISLATIVE MEASURES IN punishment has been linked with the PAKISTAN quantity and type of drug. Progression is well illustrated with In line with the recommendations of the the help of Table 1. Convention against Illicit Trafficking in (b) Money laundering has been declared Narcotic Drugs & Psychotropic Substances as a distinct crime and stringent anti- 1988, Pakistan enacted comprehensive money laundering provisions drug laws. A Control of Narcotic Substanes incorporated. Ordinance was promulgated in 1995. After (c) Comprehensive provisions for civil some positive amendment, the ordinance and criminal forfeiture of assets become an Act of Parliament in 1997. which are derived from the proceeds (Control of Narcotic Substances Act of drug trafficking. (CNSA), 1997. Similarly through an Anti- (d) Creation of special courts for speedy Narcotics Force Ordinance 1995 disposal of cases.

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(e)Compulsion to include public for specialized investigation. Assistance witnesses in narcotics seizures and advice to other enforcement agencies dispensed with. is also provided by ANF. It liaises with the (f) No bail for offenses punishable with INCB, UNDCP, DEA and DLOs for latest 5 years or more. For other offenses developments and information exchange. no bail if public prosecutor so Apart from this, the ANF is rendering certifies. commendable services in reducing the (g)Controlled delivery operations demand for drugs. The new Master Plan legalized. gives priority to demand reduction (h)Comprehensive provisions to activities, such as preventive education and enhance international cooperation. mass awareness, besides making drug (i) Provision for the registration of drug enforcement more effective. Drug addicts addicts. will be treated as psychotropic patients (j) First time detoxification and rather than criminals. Registration of drug treatment made statutory obligation addicts and their first-time treatment has of Government. been made a statutory obligation of the (k) National fund for drug abuse control government. set up. C. Enforcement Statistics In the past, drug laws were not The salient feature of the enforcement applicable to Federally Administered Tribal campaign in 1995 has been two deep drug Areas (FATA) and Provincially interdiction raids undertaken by the Administered Tribal Areas (PATA) but now (FC) in Tribal Areas. The the Islamic Hudood Laws have been Frontier Corps in a swift/massive raid in extended to these areas. Frontier corps (a the Khyber Area on January 27 and 28, well organized force) have been empowered 1995 seized 480 kgs of heroin, 170 tons of to perform enforcement duties in FATA hashish and arrested 19 drug offenders. where, previously, there was no such The above raid was followed by more authority. stringent action deep in the Choora Valley, where FC/ANF seized 6,300 kgs of heroin, B. Enforcement Agencies 105,000 kgs of opium and 3,705 liters of All of the above measures have resulted Acetic Anhydride in March 1995. In in activities entailing large seizures and addition to the above, 15 heroin processing interdictions. It is not out of place to units were also destroyed. Similarly raids mentioned here that the Anti-Narcotic in December 1996 led to the destruction of Force (ANF) is not the only agency which 10 heroin laboratories and the seizure of takes action against drug pushers. Along 143 kgs heroin, 38 kgs hashish, 757 kgs with all the Provincial Governments, not opium and 1,754 litres of Acetic Anhydride. less than five Federal ministries are, in In March 1997, also the Tribal Lashkar someway or other, engaged in anti- destroyed a non functional heroin narcotics activities. Details of agencies laboratory and siezed 70 kgs of heroin, working in this respect are outlined in arresting 5 Afghans. The significance of Table 2. The Anti Narcotics Force (ANF), this raid lies in the fact that the Tribals however, is the primary enforcement themselves took the initiative for agency. It coordinates the activities of all destruction. Their self motivation is a enforcement agencies in the field of development of monumental proportions. interdiction. Important cases of other agencies are normally transferred to ANF Apart from these mentionable seizures,

154 108TH INTERNATIONAL SEMINAR PARTICIPANTS’ PAPERS other agencies have also remained active assets has become easier after the CNSA in drug hauls. The following figures 1997, through which money laundering has recording seizures by all Agencies (in Tons) also been made a criminal offence. may be of interest: The Anti-Narcotics Force has frozen 1994 1995 1996 assets worth Rs. 3612.92 million (US $ 82.1 Opium 14.36 107.233 7.377 million) of 60 notorious drug traffickers in Heroin 6.02 9.416 5.763 the country. Prominent names among these Hashish 178.29 294.525 189.136 drug traffickers are Mirza Iqbal Baig, Haji Ayub , Anwar Khattak, Ashraf Rana, Agency wise details are provided in Dawood Jat, Fahim Babar, Sarder Gujar Table 3 for the first 10 months of 1997. and Munawar Manj. Out of these, assets worth $181 million belonging to Haji Ayub A considerable reduction in seizures has Afridi have been forfeited under court been noticed after 1995, which is an decision. Dawood Jat, a notorious cross- indication that Pakistan has ceased to be country drugs smuggler, also surrendered a producing country. Drugs illegally recently due to relentless ANF pressure, imported from Afghanistan for domestic and is now on bail. consumption and export to foreign countries are, however, intercepted F. Extradition of Drug Pushers regularly. Due to the stringent measures Pakistan extradited major drug barons of enforcement agencies, Afghan drug like Haji Mirza Iqbal Baig, Muhammad traffickers are now diverting their illicit Anwar Khattak, Tariq Butt, Khawaja exports through Central Asian States Abdul Majeed, Hafeez-ur-Rehman, instead of using Pakistan as transit Zulqarnain Khan, Misai Khan, Khalid conduit. Khan, Taviz Khan, Shahid Hafeez Khawaja, Muhammad Saleem Malik and D. Two Recent Interesting Cases Main Muhammad Azam, while cases of The details of two interesting cases of others are being judicially scrutinized by drugs seizure are attached at Appendix A the Interior Ministry. Haji Ayub Afridi also and B. surrendered to the USA, in the UAE, due to ANF pressure.This was made possible E. Seizure of Assets of Drug Barons only because Pakistan already had the After years of international struggle, it effective Extradition Act 1972, long before has been concluded that only way to combat the need was stressed in the UN convention drugs is to control drug money laundering against Illicit Trafficking in Narcotic Drugs and to seize drug assets. In Pakistan, the & Psychotropic Substances 1988. Pakistan concept of forfeiture of assets dates back also has extradition treaties with 25 to 1977 and our Prevention of Smuggling countries. Moreover extradition is Act 1977, deals with it at length. Assets permissible even to non-treaty states on a can be forfeited if acquired through the mutual basis. The present position of proceeds of the smuggling of narcotics. extraditions for drug traffickers is: These assests could be in the name of the smuggler or any other person on their Extradited 14 behalf. The law was also applicable to Pending in courts 11 assets held outside Pakistan. The burden To be arrested 2 of proof was not on the prosecution, the Total 27 onus was on the defendant. The seizure of

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G. Mutual Assistance Laws and (e) Agreements with Saudi Arabia may Initiatives soon be signed. It is true that the drug menace can not (f) Agreements envisaged with several be tackled - because of its transformation other countries. into a transnational phenomena - without (g) Two helicopters have been provided the mutual assistance of the affected for the ANF by the UK, to augment countries. Simple exchange of information drug interdiction in Baluchistan and can lead to substantial success. Timely the coastal areas of . intimation from Drug Enforment Agencies (DEAs) regarding the seizure of 6,660 kgs I. Controlled Deliveries of hashish at Antwerp, Belgium, led to the Besides the US Drug Enforcement further seizure of 5,980 kgs of hashish from Administration (DEA), the following Islamabad by the ANF. Details of the case Governments have posted their Drug are Appendix A and B. The UN convention Liaison Officers in Pakistan: Australia, against Illicit Trafficking in Narcotic Drugs Britain, Canada, France, Germany, Iran, and Psychotropic Substances 1988, Italy, Netherlands, Norway, Saudi Arabia stressed the need for mutual assistance on and Turkey. Their main function is to a reciprocal basis. A model mutual exchange information expeditiously in assistance treaty was also adopted in 1990 respect to narcotics offenses committed by by the UN General Assembly. Pakistani nationals in their countries, where the narcotics originated from In pursuance of the 1988 Convention, Pakistan or were transmitted through Pakistan added a full chapter on mutual Pakistan. The Anti-Narcotics Force in assistance in the Control of Narcotic either case provides a timely two way Substances Act 1997 (refer to chapter VIII exchange of drug related intelligence and of the Act). In the presence of this assists them in those investigations. Also substantive law, there is little need for controlled deliveries are being arranged treaties, however, friendly countries still with the cooperation of these Drug Liaison enter into protocols for special assistance. Officers, to eliminate international drug gangs operating in Pakistan or in their H. Recent International Initiatives countries for the control of drug trafficking. Undertaken by Pakistan The controlled delivery means the (a)UN International Drug Control technique of allowing illicit or suspected Programme sponsored the PakIran consignments of narcotic drugs or Border Electronic Monitoring Project psychotropic substances to pass out aimed at checking the flow of through or into the territoy of one or more narcotics across the Pak-Iran border. countries-with the knowledge and under Proposed to be extended to Afghan the supervision of their competent border. authorities-with a view to identifying (b)Pak-India cooperation inn drug persons involved in the commission of related matters. offenses established in accordance with (c) Memorandum of understanding with Article 3, Paragraph 1 of the United Kazakhastan. Nations Convention against Illicit Traffic (d) Agreements to make joint efforts for in Narcotic Drugs and Psychotropic control of drug trafficking have been Substances 1988. Therefore, in pursuance signed with United Arab Emirates, of the above, during 1996, 23 requests of China, Uzbekistan, Kyrghistan and controlled delivery operations were Russia. received from the following countries:

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Australia (1), Canada (2), Germany (1), comprise of numerous transactions by the Kuwait (3), UK (13), & USA (3). A total 62 launderers that could alert a financial kilograms of heroin was exported through institution to criminal activity: these operations. However, the results of only 2 controlled deliveries have been (a) Placement: The physical disposal of received. Those successfully culminated cash proceeds devived from illegal were in the United Kingdom, where 9 activity. persons have reportedly been arrested. (b) Layering: Separating illicit proceeds Other operations are under progess. from their source by creating complex layers of financial transactions V. MONEY LAUNDERING designed to disguise the audit trail and provide anonymity. There has always been a parallel (c) Integration: The provision of economy in Pakistan, whatever the apparent legitimacy to criminally financial system may be. We can call it a derived wealth. If the layering ‘black economy’, ‘underground economy’ or process has succeeded, integration ‘shadow economy’ which challenges the schemes place the laundering regular financial channels. Changing proceeds back into the economy in values have created a lust for easy money such a way that they re-enter the which, of course, is often contrary to law. financial system appearing as normal Money earned out of the (legal) systems business funds. cannnot be declared as taxable, therefore it is either kept hidden or it is laundered These three basic steps may occur as to appear legitimate. ‘Money laundering’ separate and distinct phases or they may covers all procedures to change the identity occur simultaneously or, more commonly, of ill-gotten money so that: they may overlap. (a) it appears to have originated from a Certain points of vulnerability have been legtimate source; identified in the laundering process, which (b) to conceal the true ownership and the money launderer finds difficult to origin of the money; and avoid, and where their activities are, (c) to put the proceeds beyond the reach therefore, more susceptible to being of the authorities. recognised: There is no one method of laundering (a)entry of cash into the financial money. Methods can range from the system; purchase and resale of a luxury item (e.g. (b) cross-border flow of cash; and a car or jewellery) to passing money (c) transfers within and from the through a complex international web of financial system. legitimate businesses and ‘shell’ companies. Initially however, as in the case Thus efforts to combat money of drug trafficking, the proceeds usually laundering largely focus on those points in take the form of cash which needs to enter the process where the launderer’s activities the financial system by some means. Street are more susceptible to recognition. These level purchases of drugs are almost always have therefore, concentrated to a large made with cash. Despite the variety of extent on the deposit taking procedures of methods employed, the laundering process banks and building societies in the is accomplished in three stages which may placement stage.

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A. Combatting the Menace of the ‘Group of Seven’ which go beyond the The U.S.A. was the first major country scope of the 1988 Convention. Quite a few which initiated legislation in 1970 and countries have enacted laws and have began to plug some of the loopholes in the entered into treaties stipulating specific banking system. The Bank Secrecy Act of procedures to facilitate and promote 1970 required all banks to report cash mutual legal assistance, in accordance with transactions of more than $ 10,000 per day the provisions of 1988 Convention and demanded that all individuals taking Concerning Drug Trafficking, money more than $ 5,000 in cash across borders, laundering and assets forfeiture submit currency reports. Still, few banks investigations. As a result of joint drug took little more than passing notice of these assets forfeiture efforts, countries like the new regulations, and some bankers were U.S, Canada, U.K, Switzerland, Colombia, delighted to break large deposits into lots Venezuela, Paraguay, Guatemala, Costa of $9,900 to avoid the reporting Rica, Cayman Islands, Argentina, Egypt requirements. It took 16 years for the U.S and Bahamas have shared the value of government to crack down on such forfeited assets amounting to about USD avoidance. In 1986, Congress made it a $87 million up to December 1993. separate federal crime to avoid the reporting requirements of the Bank The United Nations International Drug Secrecy Act of 1970. Moving cash in and Control Programme (UNDCP) in its 1997 out of U.S banking institutions became an over-view in the World Drug Report has increasingly high-risk operation. observed the following trends/issues in money laundering: The International Convention (the United Nations Convention against Illicit (a) The need to legitimize ill-gotten gains Traffic in Narcotic Drugs and Psychotropic has grown in proportion to both the Substances in 1988) seriously addressed expansion of the illicit drug industry the need to attack the international and to the propensity of criminals to problem of drug money laundering and the operate in the legitimate business forfeiture of drug assets. The international world. community resolved to deal with the (b) Two trends have characterized money problem in an effective manner with laundering in recent years. The first collective will and cooperation. A sound of these is the increasing foundation for a viable international professionalization of the industry. mechanism to grasp and control the The internationalization of money increasing menace of drug money was laid. laundering is the second major trend, It mandated that all signatory States and has been brought about by two criminalize any activities connected with factors: the integration of financial money laundering. Since 1990, when this markets into a complex, global, Convention came into effect, a large entity; and the efforts by traffickers number of countries have ratified the to avoid detection by concentrating Convention. Many States have legislated operations in countries where new laws, or have amended the existing enforcement is weak and legislation ones, and have introduced regulations to is absent or embryonic. implement money laundering counter- (c) The above recent developments in measures. Some countries have gone a step national and international areas further and adopted the recommendations have created a favourable climate for made by the Financial Action Task Force drug traffickers, smugglers, tax

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evaders and other corrupt elements This process was further intensified when to launder their ill-gotten proceeds these drug barons joined hands with increasingly through domestic formal international syndicates and money and informal financial institutions. laundering gained a transnational status. The magnitude of the problem A UNDCP’s report titled “The Illicit Opiate indicates that the challenge is Industry of Pakistan” estimated the turn formidable, and the responsibilities over of the Pakistan’s heroin industry to immense, and if needs an all out be 5% of the 1992-3GDP and 20-25% of the effort from all affected fields to total estimated ‘shadow’ or ‘parallel’ combat this menace. An integrated economy. The validity of the UNDCP’s enforcement programme which report estimates were later seriously embraces in its fold not only the questioned/contested by Pakistan arrest of traffickers and the authorities and economists. However one interdiction of drugs, but also the thing is very clear, that Pakistan’s domestic confiscation of assets as well as an heroin trade generates considerably large arrest of the growth of money profits which are presumed to be laundered laundering, thereby establishing by criminals through formal and non- integrity in financial institutions and formal banking systems. The study the credibility of the economic estimates that drug export revenues were system. about USD$ 950 million in 1985, and increased to USD$ 1.6 billion in 1990. Drug B. Pakistan Experience earnings estimated in 1992 at USD$ 1.8 In the past, some developments have billion include a significant amount of created conditions which were conducive withdrawals from overseas bank deposits for money laundering in Pakistan. There built up in previous years. Drug earnings was an exodus of a large number of averaged USD$ 1.0 billion in the period Pakistani workers abroad in the early 1985-91. 1970s who, for sending their foreign remittances to their families, often relied Is late 1980s, Pakistan (like many other on non-formal banking facilities or resource-deficient, developing countries) underground bank-like channels. Later, had to liberalize the economy through the same channels were used by deregulation, to create a conducive businessmen and industrialists to take environment of savings and investments. their capital/payment abroad due to strict In this regard, the foreign currency regulations; thus promulgated the Economic Reforms spawning a reliable, discreet and illegal Ordinance 1992 to attract foreign exchange alternate banking system which remained held by its citizens abroad. Although this the preferred mode of banking for criminal law was designed to attract illegally elements in Pakistan. stashed foreign exchange back to Pakistan, this law provided protection to the source As discussed earlier, large scale domestic of foreign exchange accounts from being heroin addiction created a booming market questioned by the tax authorities in within Pakistan. A UNDCP study Pakistan. However, law enforcement estimated the market volume at Rs. 35 agencies could still investigate the source billions (USD $ 1.2 billion). Obviously, this of such accounts in the case of reasonable black economy created a number of drug suspicion of involvement of the account barons, who had to resort to money holder in drug trafficking. laundering for ‘whitening’ their wealth.

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C. Principal Sources of Illegal D. Principal Money Laundering Proceeds Methods In Pakistan, the main sources of illegal The principal money laundering proceeds are as follows:- methods detected or suspected in Pakistan are as follows: (a) Drug Trafficking: As earlier (a) Hawala/Hundi. mentioned, Pakistan has a very (b) Bearer Investment Schemes. serious drug abuse problem which (c) Investment and Speculation in Real has spawned a large domestic drug Estate. market, accruing significantly large (d) Expenditure on Luxury Goods. profits to the drug peddlers and drug (e) Over/Under Invoicing of Imports and barons. Mainly, it is the proceeds from Exports. the domestic heroin trade which (f) Bogus Imports/Exports. forms the major part of money (g) Loan Bank Methods. laundering in Pakistan. In addition (h) Prize Bond Racketeering. to this, a considerable part of the drug (i) Smuggling of Currency. proceeds must be coming from abroad (j) Money Shown as Proceeds of to Pakistan, although most of it finds Agriculture or Poultry. its way to various tax havens around the world. Among these methods, ‘Hawala’ remains (b) Smuggling of Contraband: In te preferred mode of money laundering in Pakistan, despite its best efforts to Pakistan. Users of Hawala services include root out the evil of smuggling, non-resident working abroad, considerable smuggling of sending hard earned money to their familes contraband still takes place. This back home; parties indulging in criminal usually includes luxury goods, activities ranging from smuggling of electonic appliances, gun running contraband to all types of money and gold smuggling. The proceeds laundering; and organizations having a from smuggling are one of the major nexus to terrorist activities. Obviously the sources of black money in Pakistan. objectives of these users are different, while (c) Organized Crime: Organized Crime legitimate in one case, criminal and even like gambling, counterfeiting, anti-state in others. Some of the reasons cheating, car theft, bank robber and are: abduction for ransom are also sources of Pakistan’s black economy. (a) In case of Pakistani expatriates (d) Criminal Malfeasance in Public and sending money to Pakistan, the Private Sector: Proceeds from corrupt reasons include a time tested practices, fraud or criminal confidential system which is efficient misappropriation in the government/ and convenient for the parties at both public, commercial, banking and ends. It hardly involves any formal corporate sectors also contribute to documentation unlike the banking black economy of Pakistan. system, which becomes cumbersome (e) Evasion of Taxes and Duties: The for the semi or un-educated person. proceeds acquired by dishonest The “Hawala” dealer, like a good citizens/entrepreneurs by avoiding businessman, also offers a better rate taxes and duties from various sectors of rupee conversion, being the of economy also contribute toward the difference of the official and the black economy. prevailing market rate, which may

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range from 5-10% on account of in law and policy to promote their higher demand of hard currencies. business. Without fear of being Yet another reason is the lack of questioned, they are using foreign banking facilities in the remote areas currency bank accounts opened in from where most of the Pakistani local banks to receive funds from expatriates hail. Deregulation of interested parties, for payments to foreign exchange controls since 1992 designated parsons in Pakistan. (after the introduction of Protection Instances have come to notice where of Economic Reforms Act in Pakistan) some authorized money changers, have not affected the preference for maintaining foreign currency the “Hawala” system on account of accounts in their own names or some the aforementioned reasons against other person, have helped drug the formal banking system. traffickers receive payments of drug (b) Criminal organizations prefer this money from abroad. system for laundering their money, as (c) An other category of “Hawala” system well as making payments to the users are the smugglers of consumer concerned parties in Pakistan or goods and arms dealers. On account abroad. Their preference is basically of higher tariff rates on importable on account of the anonymity afforded goods and restrictions imposed on the by it due to little formal import of arms, the black market of documentation involved, leaving no smuggled goods keeps the demand for paper trail. Obviously the use of foreign exchange for payments formal international banking abroad constantly at a higher pitch, systems for conducting illegal thus making hard currencies more transactions/trading is fraught with expensive in the currency market, as great risks of being traced and compared to the official sources. connected to unlawful activities, even at a later stage. The “Hawala” system E. Relationship Between Hawala therefore suits the criminal/drug System & Drug Trafficking/Gold mafia not only for laundering their Smuggling. dirty money, but also for settling The Hawala bankers, in addition to large financial claims in connection with scale money transactions, are also their illegal trading and smuggling, indulging in gold smuggling. Reportedly, without running the risk of being gold worth billions of dollars was being detected. However, it is pertinent to smuggled from UAE, Hong Kong and mention that taking advantage of Singapore into Pakistan and India. Much bank secrecy provisions, and the of the smuggled gold through this system absence of suspicion/cash can be linked to narcotics trafficking. transactions reporting requirements Subsequently, liberalization in the gold in the past, resulted in drug importation policy announced by the traffickers also using formal banking Government of Pakistan in the early 1990s channels for the transfer of funds. was aimed at reducing the significant The “Hawala” operators, now, after capital affiliated with the Undi or Hawala the deregulation of foreign currency systems and to secure foreign exchange. accounts by Pakistanis and the free Presently, Dubai is the main centre for movement of foreign exchange to/out Middle Eastern and South Asian gold of Pakistan without questioning, are smuggling networks. Most of the gold taking full advantage of the change imported in Dubai, comes from Swiss

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Banks and metal dealers in London. The G. Government of Pakistan’s Hawala/Hundi systems facilitate the gold Measures to Control Money trade and smuggling activities in the Laundering. Middle Eastern and South East Asian The Government of Pakistan, due to the Regions. According to one estimate, 99 worsening drug situation, has taken percent of gold purchased in Dubai is several legal, administrative and policy obtained through Hundi/Hawala measures not only to counter money transactions. It was also reported in an laundering but also to forfeit assets INTERPOL conference held in 1991, that acquired through drug trafficking and the if gold and silver smuggling in stopped, 80 smuggling of contraband goods. In to 90 percent Hundi/Hawala transactions pursuance of the 1988 UN Convention, to would automatically cease. Moreover, which Pakistan was a signatory, the Hundi/Hawala systems provide the hard Control of Narcotics Substance Act (CNSA) currency to broker’s need to finance gold 1997 (previously an ordinance of 1995) was purchases and smuggling operations. promulgated, effectively putting an impediment on freely practiced money F. Bearer Investment Schemes laundering, particularly for drug proceeds. The bearer investment schemes, It is the first time that money laundering introduced by the government in the last has been declared a crime and the reporting two decades, conveniently provided the of suspicious transactions by the banks and opportunity for exploitation for money financial institutions has been made laundering purposes. These schemes are: obligatory in this substantive law (refer sec. 67-69 of the Act). Section 67 (2) provides (a)Bearer National Bond Fund (no imprisonment for up to three (3) years if longer operative). there is a failure to supply information. The (b)Foreign Exchange Bearer State Bank of Pakistan (the Central Bank) Certificates (FEBC). has also issued the ‘Required Prudential (c) NIT Bearer Units. Instructions (1989) and Regulations (1992) (d) WAPDA Bearer Bonds. to the banking sector. In contrast to USA (e) Bearer Certificates of Investment/ laws there is no lower limit for reporting Growth Certificates. suspicious transactions, which eliminates (f) Bearer Certificates of Deposits. the loophole of breaking the transactions (g) Foreign Currency Bearer Certificates in smaller parts. The State Bank has also (FCBC). agreed, in principal, to bring all types of (h)Prize Bonds Schemes of various financial institutions/corporate sectors, denominations for Rs. 50, 100, 500, including money changers/stock markets, 1000 and recently introduced Prize within the purview of money laundering Bonds of Rs. 10,000 and 25,000. laws and regulations. The State Bank has already issued guidelines to non-banking The government was moping up some financial institutions for preventing their revenue from these beasrer investment involvement in the money laundering schemes by imposing tax ranging from 1% activities of other unlawful trades. to 7.5%, which may be described as the cost of laundering black money. Bearer bonds/ Regarding money changers, it is relevant certificates found in the possession of drug to mention that as part of exchange control trafficker or their associates are still liable reforms, Pakistani nationals and residents, to forfeiture under the law. Pakistani companies/firms have been granted licences to act as authorised money

162 108TH INTERNATIONAL SEMINAR PARTICIPANTS’ PAPERS changers (AMC). These licences are issued States. Some recommendations made may strictly in accordance with the procedure be considered as such interference by some and conditions laid down by the State States, because of their own internal Bank. These conditions aim at making political and financial circumstances. AMC’s business transparent and for However such states must consider that in helping in identifying transactions. the long run they might be the losers. Pakistan, as we have seen in previous Under section 12 and 13 of the CNSA, section, has honoured its commitment to acquisition and possession of assets derived all the international conventions to which from narcotic offenses has been made it is a signatory. Enactments/actions may punishable with up to 14 years of have been a bit late, but these are still a imprisonment, plus fine and forfeiture of step ahead of the international response. drug money. The following are worth mentioning in regard to Pakistan: Although Pakistan is already extending (a) We have reduced poppy cultivation to legal assistance to requesting countries for almost “zero”. carrying out investigations in the field of (b) Due to the non-production of opium, drug trafficking/money laundering, the Pakistan has become an importing Government of Pakistan, included in the (illicit) country to fulfil the demand CNS Act 1997 a separate chapter on of its 1.52 million addicts. mutual legal assistance. At the moment (c) Effective crack downs by law Pakistan has not yet entered into mutual enforcement agencies have compelled legal assistance treaties with other the change of route from Pakistan to countries. the Central Asian States. (d) Punishments for drugs have been In 1994, the Government of Pakistan made harsher. discontinued Dollar Bearer Certificates in (e) Pakistan is liberal in extraditions. We Europe and America for the primary have Extradition Treaties with 25 reasons that these certificates could have countries, and extradition is still been conveniently used for money possible with non-treaty States. laundering. (f) Special emphasis has been placed on mutual assistance and particular VI. CONCLUSION provisions have been made in the substantive/procedural laws. From the above discussions it is clear (g) Laws for the forfeiture of ill-gotten that transnational organized crime can not assets are more effective then the be fought without developing transnational required international standards. combatting strategies. That is why this (h)Money laundering has been issue has been taken up at the UN or considered as a distinctive crime and international level. Numerous legal provision and prudential deliberations have resulted in the present regulations have been promulgated. state of awareness about this ever (i) A fund has been established to increasing menace. Still, the community of rehabilitate drug addicts. the world is lacking in its efforts to match (j) Anti-narcotics agencies have been the advancements being made by cross- strengthened, despite financial country outlaws. We have already seen that restraints. the UN is just an advisory institution and (k)Constitution of Special Courts for can not interfere with the sovereignty of Drug Offences would go a long way

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for speedy justice. and pharmaceutical control services. (l) Promulgation of Control of Narcotics Substances Act 1997 would be a Drug traffikers also seek out countries landmark in the control of drugs. and territories with weak central banks, restrictive bank secrecy practices and Despite all of the above steps, we still limited control on foreign exchange. feel handicapped in or efforts to combat transnational organised crime. Decreased Although there are many extradition poppy production in Pakistan has been treaties and mutual assistance agreements countered by a reciprocal increase in between different countries, there are still Afghanistan, which means that there is pockets where no extradition treaties exist, hardly any difference in supply (except the and the drug pushers make full use of this. source). So we have to concentrate now on Similarly, despite the adoption of model demand reduction. The National Fund for mutual assistance treaty by the UN, there Drug Abuse Control has been set up, but has not been a sufficient response from the due to financial restraints, the required signatory countries. results are difficult to achieve. International aid agencies should now take The desired objective of completely stock of the situation and sufficient funds stopping money laundering can not be should be provided to augment the Fund. achieved unless a further measure of A consortium may be established for requiring banking and financial coordinating aid programmes. institutions to examine the origin of a deposit, and commercial activity A sound foundation has been laid by the generating it, before it is accepted, is Vienna Convention of 1998 to build a viable universally adopted. Illicit funds must be international mechanism to control the stopped before entering the international large scale international money laundering banking system. of illicit drug traffickers, through preventive measures and enforcement by VII. RECOMMENDATIONS the forfeiture of drug assets. There is In the light of the discussion on problem evidence that drug trafficking areas, the following recommendations are organizations frequently make use of made to effectively deal with international territories of countries: money laundering and the enforcement of forfeiture of drug assets: (a)that are not parties to the international drug control treaties; (a) There is need to educate and sensitize (b)that have formally ratified national governments to the evil conventions without implementing effects of drug money and the their provisions; universal need to combat it by the (c) that suffer from civil war, terrorist adoption of stringent counter activities, political instability, ethnic measures through domestic policy on conflict, economic depression or social money laundering, as well as offering tension; meaningful cooperation and (d) that are not in a position to ensure assistance to a regulatory body (to be government control over some parts established, if not existing) and law of their territories; and enforcement agencies. (e)that are not able to maintain (b) The issue of the lack of universal adequate law enforcement, customs

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adoption and enforcement of viable important depositors in international anti-money laundering provisions, banks, who must insist that they will contained in the UN Convention of not do business with instututions 1988 and supplemented by the that fail to adhere to the new tough recommendations of Financial Action international reforms on examining Task Force (FATF), must be seriously money sources. addressed by all affected nations of (e) Law enforcement agencies operating the world. A mechanism of in countries who are just beginning pressurizing the non-signatory, as to initiate assets forfeiture well as signatory but non conforming, investigation, under newly enacted countries through economic and legislation, lack the necessary financial sanctions should be expertise. Extensive training developed and adhered to as a matter programmes covering intelligence of policy under the umbrella of the gathering, financial investigation United Nations. One such action techniques involving local and foreign could be black listing the defaulting jurisdictions, and prosectution nations/banks and withholding aspects must be initiated in international loans/aid to them; in cooperation with the UNDCP and addition to stopping the handling of other such international any transactions originating or organizations. The launching of joint passing through black listed nations financial drug assets investigations whose banks are prepared to handle by various national law enforcement illegally accumulated funds. These agencies, for better cooperation and pressures could be applied by the loan co-ordination to trace drug assets for giving countries, with the blessing of forfeiture, could prove to be very the United Nations. rewarding, especially for the less (c) In order to ensure uniform and experienced enforcement agencies. regular enforcement of various anti- (f) Regular exchange of intelligence money laundering provisions in the reports/data on transnational drug banking, financial and commercial cartels, their modus operandi and sectors, there is need to create a true their money laundering networks multi-national banking, financial and should be ensured. commercial regulatory body. This (g) An international fund of forfeited body should be empowered to inspect drug assets may be set up, which may and ensure compliance of the various receive fixed percentage of all counter-money laundering forfeited assets from all concerned provisions. Within each country also countries. This fund should be an effective central body comprising utilized to: of banking experts, chartered accountants and law enforcement • develop well researched personnel should be charged with the intelligence database on responsibility of inspecting and international drug trafficking and ensuring the implementation of the money laundering organizations, various anti-money laundering their assets, bank accounts and provisions adopted under the local other relevant information on state laws. their criminal activities; (d) Equally important is the pressure • to set up an efficient from the client countries and communications network between

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drug enforcement agencies in all countries, to enable them to make i) Mehmat: He is a resident of Turkey and use of this database in their day also holds citizenship of Holland. He to day operational work; was the financier of the gang. He came • to design and conduct various to Islamabad and stayed at the Holiday courses at the regional level for Inn Hotel where he settled the improving the professional skills smuggling details. of the intelligence, investigative ii) Kamran Gul: He was the Managing and prosecution personnel of the Director of Total Cargo Company who, law enforcement agencies. along with his two workers Gul Afsar Khan and Mohsin Khalid, arranged the APPENDIX A packing and subsequent despatch through the company. CASE NO. 1 - RECOVERY OF iii) Muhammad Javed Baig: He belongs to 6660 KG HASHISH AT ANTWERP, Peshawar and procured the hashish BELGIUM (AUGUST, 1996) from Afghanistan. He also arranged its 5980 KG HASHISH AT ISLAMABAD safe transit from Afghanistan to (AUGUST, 1997) Islamabad. In August 1996, customs officials of iv) Arshad: He is a Pakistani and was Belgium confiscated a container sent from living in Holland. He was the organizer Karachi containing household effects from of this narco-gang. which 6660 Kg hashish was recovered. The hashish was hidden in the personal luggage The Anti-Narcotics Force of Islamabad of an Egyptian diplomat, Muhammad kept close watch on the activity of Kamran Salah Sadiq, who was transferred from Gul secretly. It came to notice that Kamran Islamabad. The luggage was being shifted Gul was again trying to despatch a large to Switzerland, where the daughter of the quantity of hashish in the personal effects diplomat was residing. The information of some diplomat. After 7 to 8 months of was received by the Government of surveillance, 5980 kg hashish was Pakistan through the Drug Enforcement recovered from his wharehouse in Agency of USA. The Anti-Narcotics Force Islamabad which was kept in 46 blue started the enquiry discreetly. It came to coloured plastic drums. The Anti-Narcotics notice that the consignment was sent by Force registered the case and Kamran Gul, one Kamran Gul, Managing Director of Gul Afsar and Mohsin Khalid were Total Cargo Company, Islamabad. On arrested. The case has been sent to court receiving the information of the hashish for prosecution, where it is still pending. capture in Belgium, Kamran Gul Muhammad Javed Baig absconded, while registered a report in a Islamabad police requests have been made to Turkish and station stating that the documents relating Dutch Governments for the arrest of to the container were stolen and some other Mehmat and Arshad. After the arrest of person, misusing those documents, shipped Kamran Gul it was disclosed that the the container. Infact the report was hashish was brought from Afghanistan in registered by Kamran Gul to save himself. the “Ilaqa Ghair” (Tribal Area), from where Kamran Gul had actually sent the hashish, it was transported to Islamabad through a after proper plannning, taking advantage specially made oil-tanker. The hashish was of diplomatic immunity. His gang was kept in a warehouse for three months. The operating transnationally and the following warehouse was obtained at a monthly rent persons were the members of his gang: of USD$ 1000. The consignment was again

166 108TH INTERNATIONAL SEMINAR PARTICIPANTS’ PAPERS shifted to another (lower rent) premises into custody by ASF and handed over to from where it was recovered. ANF Karach. Search of his person led to the recovery of USD$ 22,000. By then, ANF APPENDIX B Karachi and ANF Islamabad had no knowledge of Ms Hullu being third member CASE NO.2 - RECOVERY OF 26 KG of the gang. Mr Tariq Haji was later HEROIN FROM ISLAMABAD brought to ANF Islamabad for INTERNATIONAL AIRPORT AND interrogation. It was during the course of HOLIDAY CROWN PLAZA HOTEL, interrogation that Ali Kaita and Tariq Haji KARACHI disclosed information about Ms Hullu being their third partner. It was too late to The proverb “where there is will, there arrest Ms Hullu as quite some time had is a way” was proved right by the Anti- lapsed in the interrogation process, and it Narcotics Force when, in November 1996, was expected that Ms Hullu, along with the 26 Kgs of heroin was seized from Islamabad drugs, must have left the country. Anyway, International Airport and the Holiday an effort was made by ANF to trace her Crown Plaza Hotel, Karachi. As a result of and an officer was sent to karachi to find the seizure, three African nationals, Ms Hullu. While going through the FIA belonging to the Sudan and Zaire, were immigration record, it was learnt that Ms arrested. The ring leader was a Sudanese Hullu had left the country a few days prior. national, based in Nairobi, by the name of The investigating officers traced the last Tariq Hji Idris. The others, a woman, Hullu address of Ms Hullu in Pakistan, which Kyamuno and a man, Ali Kaita, were just was the Holiday Crown Plaza Hotel, carriers who were promised USD $ 2000 Karachi. On reaching the Hotel it was for the successful trip, excluding hotel stay found that the woman left behind two large and air tickets. Mr Ali Kaita was traveling suitcases and had told the Hotel on a forged Zairian diplomatic passport and Administration that she would be an interesting aspect was that the passport returning to collect them later. The two was in the name of a lady, Isankunya Fitila, suitcases were taken into custody and which was written in French and the broke open by ANF officers in the presence Immigration Officials at the Airport were of the Hotel staff, and another 13 Kgs of not able to discern that it was a female Heroin was found. The hotel staff were name. Once Mr Ali Kaita arrived at instructed to inform ANF whenever Islamabad International Airport to fly to someone came and asked for the suitcases. Karachi, he was accompanied by Tariq Haji Suddenly, after a few weeks, the Hotel staff Idris. When Tariq Hji Idris sensed danger, found Ms Hullu asking for suitcases. She he left Ali Kaita and boarded the flight for had come back from Nairobi, along with Karachi. Later 13 Kgs of Heroin was her boyfriend, to get them. She was recovered from the suitcase of Ali Kaita. arrested and sent to jail. The boyfriend Ms Hullu who had come to airport earlier, however, was not found to be involved in successfully boarded the aircraft along with the drugs business and was therefore the drugs. Ali Kaita was interrogated on released. the spot and he disclosed that Tariq Haji Idris had given him two suitcases and he did not know what was in it. One this information, the ANF and ASF (Karachi) were alerted. The moment Tariq Haji landed at Karachi Airport he was taken

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TABLE 1 PROGRESSIVE PUNISHMENTS ACCORDING TO THE CONTROL OF NARCOTICS SUBSTANCES ACT 1997.

Quantity� of Drugs� Recovered� (not to scale)

1000g� (1kg)

200g

100g

10g

0 Drug� Heroin� Opium� Any other narcotic� Type Cocaine� Coca leaf� drug or controlled� Opium derivative� Other psychotropic� substance not� Coca derivative substances otherwise specified

0-2 Years with fine 3-7 Years with fine Death or life term with fine� of Rs.1 million or more

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TABLE 2 GOVERMENT OF PAKISTAN

Ministry� Ministry� Ministry� Ministry� Ministry� of Narcotics� of� of� of� of� Control Defence Interior SAFRON Finance

A.N.F A.S.F F.C C.B.R

Customs

F.C� F.C� Coast� F.I.A Rangers Balochistan N.W.F.P Guards

PROVINCIAL GOVERNMENTS

Excise &� Political Levies� Police Taxation Khasadar Force

A.S.F Airport Security Force A.N.F Anti Narcotics Force C.B.R Central Board of Revenue F.C /Frontier Corps F.I.A Federal Investigation Agency N.W.F.P North West Frontier Provance SAFRON States & Frontier Regions

169 RESOURCE MATERIAL SERIES No. 54 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 No.of 14660.00 14660.00 Defend. 0 0 0 0 0 0 0 0 0 0 0 0 351 3 51 Qty. Seized QTY. in Kgs./Nos. QTY. 0 0 0 0 0 0 0 0 0 0 0 0 347 347 No.of Cases 0.00 0.000 0.000 5.000 0.000 0.000 0.000 0.000 0.000 0.000 No.of 326.000 2254.260 Defend. 1208.805 3794.065 1 0 0 0 0 0 0 0 0 0 16 12 107 136 Qty. Seized 0 1 0 0 0 0 0 0 0 0 11 99 16 127 No.of Cases 0.000 0.000 0.000 1.785 34.963 71.434 27.300 No.of 2239.075 4217.800 4807.962 Defend. 39485.790 19633.965 92322.537 21802.463 6 3 0 0 0 14 29 37 179 100 832 Qty. 20870 22122 Seized 0 0 0 3 6 16 32 17 18 178 822 123 No.of 20746 Cases 121961 3.333 0.030 0.500 60.000 75.707 36.600 20.830 No.of TABLE 3 868.422 150.773 782.230 495.324 140.151 801.019 413.859 Defend. 1 5 1 2 2 14 10 10 108 102 163 1047 Qty. 11942 10475 Seized 8 1 1 1 1 13 10 14 119 318 108 1045 No.of 11972 10331 Cases 0.000 1.045 0.000 0.000 6.250 16.000 10.816 No.of 167.552 261.100 187.349 1033.795 Defend. 3114.300 1619.841 6448.048 0 1 4 2 0 0 0 5 11 27 41 WITHIN PAKISTAN FROM PERIOD 01/01/97 TO 31/10/97 WITHIN PAKISTAN 251 1656 1998 Qty. Seized OPIUM HEROIN CHARAS BHANG OTHERS 0 8 2 3 0 1 0 1 30 12 36 254 1590 1937 No.of Cases ANTI NARCOTICS FORCE STATEMENT SHOWING NARCOTICS SEIZURES ANTI NARCOTICS FORCE STATEMENT AGENCIES A.N.F A.S.F. CORPS F. BALOCHISTAN GUARDS COASTAL CUSTOMS EXCISE ISB.POLICE CORPS F. N.W.F.P POLITICAL AUTHORITIES POLITICAL POLICE PUNJAB RANGERS POLICE RAILWAYS SINDH RANGERS Total

170