Banks asked to mon­i­tor for­eign cur­rency ac­counts

The Pak Banker - - FRONT PAGE -

KARACHI: State Bank of Pak­istan (SBP) has in­structed com­mer­cial banks to main­tain record of in­di­vid­u­als with monthly trans­ac­tion of $10,000 and en­ti­ties with $25,000 or equiv­a­lent val­ues of other for­eign cur­ren­cies to pre­vent use of bank­ing chan­nels for ter­ror­ist ac­tiv­i­ties. "Au­tho­rized deal­ers are ad­vised to en­sure that con­sol­i­dated data/record of trans­ac­tions routed through for­eign cur­rency ac­counts of in­di­vid­u­als/en­ti­ties is main­tained by them at their head of­fices on monthly ba­sis, in ad­di­tion to the data/record al­ready be­ing main­tained," cir­cu­lar is­sued stated. Data of those per­sonal for­eign cur­rency ac­counts main­tained by in­di­vid­u­als where ag­gre­gate amount ex­ceeds $10,000 or its equiv­a­lent in other for­eign cur­ren­cies is de­posited in, with­drawn from or re­mit­ted out from the ac­count dur­ing the month.

Data of for­eign cur­rency ac­counts main­tained by en­ti­ties where ag­gre­gate amount ex­ceed­ing $25,000 or its equiv­a­lent in other for­eign cur­ren­cies is de­posited in, with­drawn from or re­mit­ted out from the ac­count dur­ing the month as per at­tached for­mat.

It may be noted that in pur­suance of sub-sec­tion (7) of sec­tion 7 of the Anti-Money Laun­der­ing Act, 2010 (as amended in 2015), re­port­ing en­ti­ties in­clud­ing Au­tho­rized Deal­ers are un­der obli­ga­tion to con­duct Cus­tomer Due Dili­gence (CDD) and main­tain record of trans­ac­tions, ac­count files and doc­u­ments ob­tained through such dili­gence in ac­cor­dance with the reg­u­la­tions is­sued by the SBP. In this re­gard, it is re­it­er­ated that Au­tho­rized Deal­ers must en­sure strict ob­ser­vance of all ap­pli­ca­ble in­struc­tions in­clud­ing Reg­u­la­tions/Guide­lines is­sued by SBP re­gard­ing KYC/CDD while open­ing and main­tain­ing for­eign cur­rency ac­counts. Fur­ther, on­go­ing CDD is an es­sen­tial part of an ef­fec­tive Anti Money Laun­der­ing (AML) and Com­bat­ing the Fi­nanc­ing of Ter­ror­ism (CFT) regime and ap­plies to all cus­tomers to whom the Au­tho­rized Deal­ers are of­fer­ing any type of ser­vice(s). With the view to pre­serve the in­tegrity, sound­ness and safety of the fi­nan­cial sys­tem, State Bank of Pak­istan (SBP) has been en­deav­or­ing to pre­vent the pos­si­ble use of the bank­ing sec­tor for money laun­der­ing, ter­ror­ist fi­nanc­ing and il­le­gal trans­fer of funds.

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