Govt amends AML, CFT laws to comply with FATF conditions

In order to comply with the Financial Action Task Force (FATF) conditions, the government has bound the State Bank of Pakistan (SBP) and all branches of commercial banks by enforcing the amended Anti-Money Laundering (AML) and Counter Financing of Terrorist (CFT) laws.

Until now, AML/CFT regulations were only enforceable on the National Savings Scheme (NSS) centers and branches. However, the new regulations require the SBP and the commercial banks dealing with the NSS instruments to follow the same rules.

According to Statutory Regulatory Order (SRO), issued by the Finance Division on Wednesday, “These regulations shall apply to the Central Directorate of National Savings (CDNS) and any other office of the issue dealing with the NSS as defined under regulations 2(1).”

The government had constituted the supervisory board under the chairmanship of Additional Secretary Finance and it comprises five other members, from SBP, SECP, Financial Monitoring Unit (FMU), DG FATF and Joint Secretary Finance Division.

This supervisory board will be responsible for establishing the policies and procedures to ensure implementation of its supervisory role effectively and efficiently, including a sanction regime to address the relevant violations by the CDNS. It will be conducting the necessary studies and assessment in relation to any aspects of AML and CFT supervisory regime, including regular and ad hoc risk assessment through participation in any national risk assessment exercise. It will be co-operating with its foreign counterparts in accordance with the section 6B of AML Act and any other orders, rules and regulations, made there under. It will engage the SPB or external auditors from the SBP’s approved panel of auditors to ensure compliance with the AML Act.