KARACHI: The State Bank of Pakistan (SBP) said on Tuesday that a comprehensive framework has been developed to deal with the money laundering and terror financing to restrict misuse of banking channels.
“In order to strengthen trade-related Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regime and restrict possible misuse of banking channels, a comprehensive framework on the subject has been developed,” said a circular issued.
The SBP advised the authorised dealers (banks) to upgrade their systems and control and bring policies and procedures in line with the requirements of the framework to ensure meticulous compliance with the provisions with immediate effect.
The provisions of this framework are in addition to and not a replacement of already issued instructions on the subject of ML/FT risks, said the SBP.
The compliance of the same will not absolve dealers from their legal and regulatory obligations under the prevailing AML/CFT laws and rules and regulations or any other relevant law in force, the central bank added.
The authorised dealers were also advised to educate their clients about their obligation of ensuring correct declaration of particulars on the prescribed forms, utilisation of foreign exchange for the exact purpose for which it is acquired and repatriation of foreign exchange that represents the full export value of goods.
“In the event it is found that material information required to be submitted on the prescribed forms has been omitted or suppressed, foreign exchange is misutilised by a client of a dealer or export proceeds repatriated by a client do not represent the full export value of goods, SBP will initiate penal action against such delinquent parties,” warned the bank.
The SBP said the matter will also be reported to relevant stakeholders for necessary action under the laws being administered.
Published in Dawn, October 16th, 2019