Circulars/Notifications - Agricultural Credit & Microfinance Department  
 AC&MFD Circular Letter No. 04 of 2019
December 30, 2019 

 

The Presidents/Chief Executives
All Microfinance Banks (MFBs)

Dear Sir / Madam,


Fit & Proper Test (Criteria) for Microfinance Banks


Please refer to the instructions issued vide AC&MFD Circular No. 03 dated June 10, 2014 and AC&MFD Circular No 05 of September 22, 2015 to strengthen the Fit & Proper Test Criteria.

2. State Bank of Pakistan (SBP) has been issuing instructions to strengthen the Fit & Proper Test Criteria from time to time. In view of potential risk arising from money laundering, terrorism financing and proliferation financing, it is imperative that any person(s) linked to any criminal activities or affiliated to any terrorist organizations shall not become part of MFBs.

3. Accordingly, any sponsor shareholders/beneficial owners, directors, presidents and key executives (persons subject to FPT) shall become disqualified if they are designated/proscribed or associated directly or indirectly with designated/proscribed entities/persons under United Nations Security Council Resolution or Anti-Terrorism Act 1997. Henceforth, all MFBs are advised to submit Revised Questionnaire for assessing ‘Fit & Proper Test’ as per Annexure E-1 and ‘Declaration by the Proposing MFB’ as per Annexure E-5 to SBP confirming that the person(s) subject to FPT have been verified through National Database and Registration Authority and screened against the list(s) of designated/proscribed entities and persons as per the applicable laws, rules and regulations.

4. Further, it is reiterated that FPT is continuous in nature. Any subsequent change in this regard shall be immediately disclosed to the Board of Directors and/or the concerned authorities including SBP.

5. All other instructions on the subject shall remain the same.

6. Please acknowledge receipt.

Enclosure:
Revised Questionnaire for Assessing ‘Fit & Proper Test’ (Annexure-E-1)
Declaration by the Proposing MFB (Annexure-E-5)

 


Yours sincerely,


Sd/-
(Noor Ahmed)
Director



       
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