State Bank of Pakistan (SBP) with an objective to preserve the integrity, soundness and safety of the financial system, has been endeavoring to prevent the possible use of banking channel for money laundering, terrorist financing, proliferation financing and other illicit activities. Towards this end, SBP under powers conferred in Section 41 of Banking Companies Ordinance (BCO) 1962 and Section 31 of the Microfinance Institutions Ordinance 2001, has issued various instructions/guidelines for the Banks/ DFIs/ MFBs from time to time.
2. Further to the ‘Anti Money Laundering and Combating of Financing of Terrorism Guidelines on Risk Based Approach’ for Banks/ DFIs issued by SBP vide BPRD Circular No. 2 dated September 13, 2012, it has now been decided to realign, update and expand coverage of these guidelines, in the backdrop of recent observations highlighted in Pakistan’s Mutual Evaluation Report and revisions made in AML/ CFT Regulations for Banks/ DFIs/ MFBs.
3. All Banks/ DFIs/ MFBs are therefore advised to ensure meticulous compliance of updated guidelines on the subject that shall be applicable with immediate effect. Any deviation or non-compliance shall attract punitive action under the provisions of relevant laws.
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