News

Pakistan’s State Bank unveils new AML/CFT regulations for Forex Firms

Richard M. JANUARY 1, 2020 1 minute read

State Bank of Pakistan on Tuesday amended Anti-money laundering (AML) and Counter Financing of terrorism (CFT) related regulations in foreign exchange companies manual 2018 to further align them with the FATF action plan.

The global finance watchdog is going to announce its decision regarding the country’s deficiencies in AML/CFT laws.

“Exchange Companies shall take steps to ensure that there AML/CFT policies adhere to FATF regulations,” the SBP said. To achieve this, their policies, SOPs, compliance programs, and delivery channels will be monitored on an ongoing basis by the board of directors.

Foreign Exchange companies are further required to identify the customers and verify their identity on the basis of authentic documents, data or information. The need to identify if there is a beneficial owner who isn’t the customer.

For exchanging any foreign currency equal to, or below, the threshold of USD 500, exchange firms may resort to normal customer due diligence, wherein details like name and number of identity documents should be obtained at the minimum if there are no circumstances of a suspicious transaction.

According to the amendments by SBP, Forex firms shall employ automated systems for customer risk profiling, AML screening, and transaction monitoring. Moreover, the firms are required to take appropriate measures to manage and eliminate any risk that may arise afterward.

Disclaimer: The views and opinions expressed on this webpage or weblink are those of the author only, and are not necessarily the views or opinions of Shufti Pro Limited. The material and information on this weblink is solely for general information purposes. You should not rely upon the material or information on the website as a basis for making any business or legal decision.

While we endeavor to keep the information up-to-date and/or correct, we make no representations or warranties of any kind, express or implied, or for any purpose about the completeness, accuracy, reliability, suitability, or availability of the contents or information herein. Any reliance on its content is thus entirely at your own risk.

For the avoidance of doubt, Shufti Pro Limited will not be liable for any false, inaccurate, inappropriate, or incomplete information presented herein, and all liabilities with respect to actions taken, or not taken, based on the contents or information herein, or for any loss sustained by you as a consequence are hereby expressly disclaimed by us.

Share you link