August 4, 2021

SBP Introduces New Framework To Counter Money Laundering And Terror Financing

In a statement issued by the State Bank of Pakistan (SBP), the SBP has said that a comprehensive framework has been introduced to Counter Financing of Terrorism (CFT) and improve Anti-money Laundering (AML) efforts. SBP said that the banks should make sure that they comply with these conditions and put them into effect immediately. These CFT and AML policies are in addition to such policies that are already in place and SBP has directed the concerned authorities for their quick implementation.

The SBP statement said that, “To strengthen trade-related AML and CFT regime and restrict possible misuse of banking channels, a comprehensive framework on the subject has been developed.”

The SBP further said that failure to comply with these new policies would result in legal action under the existing AML and CFT regulations. The SBP also directed the banks to educate their customers regarding the correct methodology of declaring their assets and their documentation requirements, utilization of foreign exchange and repatriation of foreign exchange that represents the full value of goods.

The SBP added in their statement that, “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 is-utilized 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.”

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