KARACHI, May 31: State Bank has asked the exchange companies to strictly follow the instructions to combat money-laundering and terrorist financing.

The SBP in its circular asked the exchange companies to ensure strict compliance of notifications issued by the government under United Nations Security Council Act.

According to the SBP, the exchange companies will obtain from customers information as to the purpose and intended nature of transaction and every customer would be identified for conducting any business transaction.

The exchange companies would monitor all complex, unusually large transactions and all unusual patterns of transactions, which have no apparent economic or visible lawful purpose.

In case of suspicion, consideration be given to file a suspicious transaction report with Financial Monitoring Unit.

According to the guidelines, attention of exchange companies has also been drawn towards ‘Red Flag Indicators’ for generating STRs to Financial Monitoring Unit (FMU) as issued by the FMU.

The exchange companies will consider risk factors, like customer background, country of origin, public or high profile position, and other risk indicators.