WHITE COLLAR CRIME IN PAKISTAN
INTRODUCTION;-
Legal system of a country primarily aims at to give justice to all its citizens without any discrimination. But this discrimination is in every legal system is true to exist. These are the loop holes in the system, which required to be looked into. In the society, where we are living an offence committed by a person of low social rank is penalized stringently under the hard rules of law but the same offence is committed by a person of high social rank, situation changes.In practice, law or I would say system appears to be more soften towards the offender. As the society emerged and developed, the new challenges arose in every field collaterally in the world of crimes. A crime which is known as "White-Collar crime" also emerged in this course.
Objectives of research;-
The main objectives of research is
1. To study the concept of white collar crime in detail.
2. To study the impact of white collar crime from pakistani perspectives.
3. To study which laws are dealing with with collar crime in Pakistan.
4. To study which international laws are dealing with white collar crime.
5. To study how we can solve this problem.
Definition;-
This term was first coined by the sociologist Edwin Sutherland who was the chief proponent of this social concept of crime.Within the field of criminology white-collar crime has been defined by Edwin Sutherland as:
"A crime committed by a person of respectability and high social status in the course of his occupation" (1949)
It deals with criminal acts by Holder of Public Office, persons in authority or even by persons involved in commercial organizations. White-collar crime therefore overlaps with corporate crime because the opportunity for fraud, bribery, insider trading, embezzlement, computer crime and forgery is more available to white-collar employees.White-collar crimes have a drastic effect over the economy and financial state of a country.
Who is the holder of public office;-
The holder of public office has been defined in the section 5, clause (l), of National Accountability Ordinance 1999:
"Holder of public office" means a person who:
1) is or has been the President of Pakistan or the Governor of a Province.
2) is, or has been the Prime Minister, Chairman Senate, Speaker of the National Assembly, Deputy Speaker National Assembly, Federal Minister, Minister of State, Attorney General and other Law Officer appointed under the Central Law Officers Ordinance, 1970 (VII of 1970), Advisor to the Prime Minister, Special Assistant to the Prime Minister, Federal Parliamentary Secretary, Member of Parliament, Auditor General, Political Secretary, Advisor or Consultant to the Prime Minister and holds or has held a post or office with the rank or status of a Federal Minister or Minister of State;
3) is, or has been, the Chief Minister, Speaker Provincial Assembly, Deputy Speaker Provincial Assembly, Provincial Minister, Advisor to the Chief Minister, Special Assistant to the Chief Minister, Provincial Parliamentary Secretary, Member of the Provincial Assembly, Advocate General including Additional Advocate General and Assistant Advocate General, Political Secretary, Advisor or Consultant to the Chief Minister and who holds or has held a post or office with the rank or status of a Provincial Minister
4) is holding, or has held, an office or post in the service of Pakistan, or any service in connection with the affairs of the Federation, or of a Province, or of a local council constituted under any Federal or Provincial law relating to the constitution of local councils, or in the management of corporations, banks, financial institutions, firms, concerns, undertakings or any other institution or organization established, controlled or administered by or under the Federal Government or a Provincial Government, other than a person who is a member of any of the Armed Forces of Pakistan, or for the time being is subject to any law relating to any of the said Forces, except a person who is, or has been a member of the said Forces and is holding, or has held, a post or office in any public corporation, bank, financial institution, undertaking or other organization established, controlled or administered by or under the Federal Government or a Provincial Government;
5) is, or has been, the Chairman or Vice Chairman of a Zila Council, a Municipal Committee, a Municipal Corporation or a Metropolitan Corporation constituted under any Federal or Provincial law relating to local councils; and "Explanation" For the purpose of this the expressions "Chairman" and "Vice Chairman" shall include "Mayor" and "Deputy Mayor" as the case may be, and the respective councilors therein;
6) any person who has served in and retired or resigned from or has been discharged or dismissed from the Armed Forces of Pakistan.
Types of White Collar Crime;-
Followings are the types of White Collar Crime:
1) Bank Fraud;-
Fraud is a crime committed with an intention to deceive and gain undue advantage. Bank Fraud is a fraud committed on the banks. It is committed by the fraudulent companies by making fake representations. It is also related to the manipulation of the negotiable instruments like cheque bouncing, securities, bank deposits etc. Bank fraud is concerned to the public at large because there is a relation of trust between the banks and the public. It is the most common type of white collar crime and also a corporate crime. It harms public as well as the government of the country.
2) Bribery:-
Bribery is also a very common type of white collar crime. By bribery we means giving money or some goods to the person at a high position in return of a favor. In simple words bribery is when one man gives money to the other which is in authority. It is done for the purpose of insisting him to do something or to prevent him from doing something. It is the most common income of most of the public officials of our country.
3) Cybercrime:-
Cybercrime is the biggest cause leading to these type of crime in pakistan. It is the latest problem prevailing in the cyber world. Cybercrime is the crime which is related to ‘computer networks’. With the rapid increase of advancement of technology there is also a rapid increase in the crime related to the technology. Cybercrime involves the persons who are expert in computer related technology. And it is committed against the victim directly or indirectly to cause a harm to his reputation or to harm in physical or mental way using internet, networks and other technological sources. Cybercrime threatens the nations as well as the person’s security and financial status. Cybercrime can cause huge financial loss to the country. Not only the financial loss but it can also threaten the privacy of a person. Disclosure of confidential information can create privacy problems. Also cybercrime against women is also rising. By the use of telecommunication networks, mobile phones cyber stalking, sending obscene messages and pictures by criminals to women is also increasing.
Examples ;-
· Hacking,
· Child pornography,
· Copyright infringement,
· Cyber terrorism,
· Cyber stalking are some of common examples of cybercrime.
4) Money Laundering:-
Money laundering is a crime in which the criminals disguise the identity of the money. In this crime, criminals try to hide the original ownership of the money and the place where they obtained that money by illegal means. Laundering is done with the intention of making that money came from legal sources. In simple words money laundering means to show the illegitimate money as legal money. For instance if a person obtain money from black marketing, trafficking of illegal goods the money will be considered ‘dirty’ and he cannot deposit into the banks as it may seem suspicious if he directly deposit money into the financial institutions because he had to create statements and records stating that where the money came from.
Steps;-
Money laundering involves three steps:
Firstly, the owner of the money obtain the money from some illegal means and deposit into the bank by some way.
Then through multiple transactions the transfer of money is being done.
Lastly, they return the money into banks to make it legitimate.
5) Tax Evasion:-
Tax evasion is committed with an intention to conceal one’s actual taxable income and one’s original position to the authorities. This concealment of income is done to reduce the tax liability in the eyes of government. In simple words it means to hide the money obtained from the illegal means in order to reduce one’s liability to pay tax and to show low income to the tax authorities. Tax evasion has a negative impact on the social values as it demoralized honest tax payers and they might also want to do tax evasion also it gives economy power in the hand of few undeserving people.
6) Identity Theft:-
Identity theft is one of the easiest type of crime these days. Due to advancement of technology it is very easy to access personal information of anyone. Identity theft is the crime in which the criminal access unauthorized information such as name, address, phone number etc. and use this information to gain money. In simple words identity theft is committed by using some other person identity to commit fraud or to gain money by illegal means.
7) Fraud in Weights and Measures;-
The act of placing an item for sale at one price yet charging a higher price at the time of sale or short weighing an item when the label reflects a higher weight.
8) Welfare Fraud;-
To engage in an act or acts where the purpose is to obtain benefits (i.e. Public Assistance, Food Stamps, or Medicaid) from the State or Federal Government is called welfare fraud.
9) Price Fixing;-
An agreement between two parties to set prices for a certain product, thereby violating free market operations is called price fixing.
White Collar Crime In Different Professions:-
1) In Medical And Health:-
· Making of false medical certificates by the doctors.
· Fake and intended prolong the treatment in order to increases the bills.
· Sex discrimination of the child by the doctors on the compulsion of the patient to gain money.
· Delaying of time by doctors to increase the amount of money in the bills.
· Sale of sample medicines which are not allowed to the chemists.
2) In Legal Profession:-
· Fabrication of forged documents.
· Threatening the witnesses of the other party.
· Violation of ethical standard of legal profession to gain money.
3) In Education:-
· Collecting huge sums of money in the name of donations by students in order to give them admission.
· Merit based admission is replaced by donations.
· Collect huge amount of money in the name of government grants.
Commission of Offence;-
The white collar crime is said to be committed; when a holder of a public office, or any other person, is said to commit or to have committed the offence of corruption and corrupt practices.
Laws relating to white collar crime in Pakistan ;-
In Pakistan the National Accountability Bureau (NAB) Ordinance 1999, anti-corruption laws and the previous Ehtesab Act 1997 primarily deal with white-collar crimes. Under Section 14 of the NAB
Ordinance, the presumption of innocence has been done away with and the onus of proof is placed on the accused. Similarly, under Section 4 of the Prevention of Corruption Act 1947, presumption of innocence on part of the accused has been done away with and the burden of proof lies on the accused.
Prosecution and Punishment;-
In the face of age-old criminal law of Pakistan, identification, investigation, prosecution and punishment are almost impossible with high-profile lawyers being engaged by the accused to defend white-collar criminals challenging the courts’ jurisdiction, constitutional guarantees, fair trial, claim of presumption of innocence and proof of guilt beyond a shadow of doubt.
1. Under Section 14 of the NAB Ordinance, the presumption of innocence seems to have been done away with and the onus to prove innocence is on the person accused under Sections 9 and 10 of the Ordinance. Section 14 further empowers to disqualify a person for a period of 10 years for seeking or from being elected, chosen, appointed or nominated as a member or representative of any public body or any statutory or local authority or in the service of Pakistan or any province.
2. Section 10 provides punishment to the accused with rigorous imprisonment for a term, which may extend to 14 years and with fine, if the assets and pecuniary resources of such a person are found to be disproportionate to the known sources of his or her income, whether in his or her name or in the name of any of his or her dependents or benamdars.
3. The NAB Ordinance seems to have empowered the institution, under Section 9, to investigate an offence against a public office holder or any other person. If satisfied that prima facie a case has been made out, the NAB Chairperson is empowered to refer the matter to the court for prosecution and punishment.
4. Section 16 empowers the NAB Chairperson, having regard to the facts and circumstances of the case, to file a reference before any court established anywhere in Pakistan. Similarly, under Section 16-A, the Chair may apply for transfer of the case – in the interest of justice and for protection and safety of witnesses – from any such court to the Supreme Court of Pakistan, or to the High Court of a province, as the case may be, or in the interest of justice try the same under the NAB Ordinance.
5. Section 21 empowers the NAB Chair or any officer authorized by the federal government to request a foreign state to do certain acts, in accordance with the law of the state. These acts include asking for evidence taken or documents or other articles produced, obtaining and executing search warrants or other lawful instruments, or authorizing search for things relevant to the investigation or proceedings in Pakistan believed to be located in that state.
6. Section 6(ba) of the NAB Ordinance provides that a person shall not be appointed as the NAB Chair, unless that person is a retired Chief Justice or a judge of the Supreme Court or a Chief Justice of a High Court, or a retired officer of the Armed Forces of Pakistan equivalent in the rank of a Lt. General or a retired federal government officer in BPS 22 or equivalent.
Despite the above provisions for appointment of the NAB Chair, in preference to a retired Chief Justice or judge of the Supreme Court or Chief Justice of a High Court, the authorities concerned have usually preferred to appoint a federal government officer, as provided in Section 6(ba)(iii). Since the power of appointment of Chair NAB vests in the federal government and a decision by the Chair against a public office holder or person having high stakes in a public or private sector corporation becomes a subject matter of consideration by the incumbent government, this normally results in non-prosecution or delayed prosecution of the person concerned under the NAB
Ordinance. Since the promulgation of the Ordinance to this day, there has hardly been any prosecution/ punishment of a public office holder or an officer with high stakes in a public or private sector corporation.
International law relating to white collar crime ;-
Conscious of the ongoing struggle to perish white-collar crimes and eradicate consequent corruption in society, a large number of countries persuaded the United Nations to cater to the need, which finally resulted in the UN Convention Against Corruption 2003, to which many countries are signatory. Pakistan too is a signatory to the Convention. A perusal of the Convention indicates that the signatory states have responsibility to develop and implement or maintain effective, coordinated anti-corruption policies; to take measures to prevent money laundering; to take measures for freezing, seizure and confiscation of proceeds of crime derived from offences established in accordance with the Convention, or the property the value of which corresponds to that of such proceeds, property, equipment or other instrumentalities used in or destined for use in offences established in accordance with the Convention, etc. State parties shall consider assisting each other in investigations of and proceedings in civil and administrative matters relating to corruption as well as affording to one another the widest measure of mutual legal assistance in investigations, prosecutions and judicial proceedings in relation to the offences covered by the Convention. Pakistan, as a signatory state, also has to implement this UN Convention by enacting necessary laws to cater to the provisions of the Convention.
Conclusions And Suggestions:-
White collar crimes are the crimes which cause a harm to the economy of the country as a whole. It threatens the country’s economy by bank frauds, economic thefts, evasion of tax etc. It not only affects the financial status of a country or a person but It has also a negative impact on the society. The various crimes such as bribery, corruption, money laundering has affected society in a negative way.
1. The institutions in charge of making criminal provisions should immediately conduct an in-depth review to find appropriate criminal law policies for the each type of white-collar crime, related to the arrangement of either its criminal elements or its sanctions.
2. In addition, the institutions should also continue to make non-penal efforts that can maintain the view of integrity, morality, and professional responsibilities of the people who have the potential to commit white-collar crime, mainly through the internalization of local wisdom that supports the eradication and prevention of criminal acts of corruption.
