Please
refer to BPD Circular Letter No. 25 dated 6th September,
2002 wherein the banks/NBFIs were advised to discourage the
entry of persons who have been involved in fraud & forgery
cases with their previous employers. It has, however, been
noted that some of the banks/DFIs have failed to exercise
due care while hiring such personnel.
2. It has further been
noted that banks/DFIs instead of terminating the services
of persons involved in fraud, forgeries, disciplinary action
etc prefer to accept their resignation. In this way, such
type of unwanted persons are able to join other financial
institutions. In order to avoid such instances & to discourage
the entry of these persons, the banks/DFIs are, therefore,
advised to;
- re-inforce
their existing procedure of verification of antecedents
of persons seeking employment within a period of 30 days
from the date of issuance of this circular letter. The revised
procedure of verification of antecedents of these persons
should, interalia, include obtaining of satisfactory confidential
reports in writing on the integrity, suitability etc. of
the applicant from all their former employer(s) (financial
institutions only).
- provide
SBP, the information of the person(s), (a) forced to tender
resignation (instead of termination of services) on account
of fraud, forgery, disciplinary action or any other charge
against the interest of bank/DFI etc when proved after holding
due inquiry (b) terminated/dismissed from the services,
on account of fraud, forgery, disciplinary action or any
other charge against the interest of bank/DFI etc, on the
enclosed format separately for the last ten years (i.e.
from 01-01-1993 to 31-05-2003) latest by June 30, 2003.
The banks/DFIs shall, thereafter, continue reporting of
said information within 7 days from the date of accepting
of forced resignation or termination of services of such
employee(s) as the case may be.
- invariably
indicate the position at (ii)(a) above, where applicable,
while replying to the references received by them from the
other banks/DFIs relating to verification of antecedents
of a person seeking employment.
3.
The information required under para (ii) above may
be provided on enclosed format to the Director, Banking Policy
Department in a sealed envelope marked “Confidential”.
Any failure
to comply with SBP instructions shall attract the penal provision
under Banking Companies Ordinance, 1962.
4.
The instructions issued vide BPD Circular Letter
No. 25 dated 6th September, 2002 stands withdrawn
with immediate effect.
5.
Please acknowledge receipt.
Encl: - As above
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