In
order to ensure compliance with Financial Action Task
Force (FATF)’s recommendations on anti-money laundering
(AML), safeguard the interest of depositors from risks
arising out of money laundering and terrorist financing,
and to reinforce the measures being taken by the banks
/ DFIs to strengthen their Know Your Customer (KYC) /
AML procedures, it has been decided to set up a separate
Financial Monitoring Unit (FMU) in State Bank of Pakistan
with immediate effect. The FMU will be headed by a Director
and would interalia, receive, analyze and disseminate
the suspicious transactions reported by banks/ DFIs. FMU
after analysis would pass on suspicious transactions to
the relevant law enforcement agencies as and when required.
2)
The objectives and scope of work of FMU is enclosed as
Annexure-A. The FMU will coordinate with the relevant
agencies and stakeholders to ensure achievement of its
objectives. The scope of FMU will be further enhanced
once the legislation on Anti-Money Laundering is passed.
3)
All banks / DFIs are advised to report suspicious transactions
to the Director of FMU as required under Prudential Regulation
M-5. Failure to report suspicious transactions or any
violation of the instructions will attract punitive action
under the relevant provisions of the Banking Companies
Ordinance, 1962.
Please acknowledge receipt.
Annex
- A