The
Presidents / CEOs
All Microfinance Banks
Dear
Sir,
Addition
in Prudential Regulations (PR) No. 17 for Microfinance Banks
(MFBs)
Please
refer to Prudential Regulation No. 17 for Microfinance Banks
(MFBs). Following instructions have been added to the aforesaid
regulation with immediate effect under a separate head of
“Record Retention”.
2)
The records of transactions and identification data should
be maintained by MFBs in systematic manner with exactness
of period of preservation. For the purpose, following minimum
requirements shall apply;
i).
Identification Record: MFBs shall keep record on
the identification data obtained through the Customer Due
Diligence (CDD) process, account files and business correspondence
for at least five years following the termination of the
business relationship.
ii). Transactions Record: MFBs shall maintain
all necessary records on transactions, both domestic and
International, for at least five years following completion
of the transaction. Such record must be sufficient for reconstruction
of individual transactions so as to provide, if necessary,
evidence for investigation or prosecution of criminal activity.
The examples of the necessary components of transaction
record may include: customer’s name (beneficiary’s
name), address, nature and date of transaction, type and
amount of transaction, currency involved, type and identification
of any account involved in the transaction.
3)
The identification and transactions record should be made
available to SBP as and when required.
4) MFBs shall, however, retain records for longer period,
if required by any other law or where transactions and /
or relationship relate to any investigation, litigation
or required by the Court of law or by any other competent
authority.
5)
State Bank of Pakistan, during the course of inspection,
would particularly check the compliance of the above instructions.
Please
acknowledge receipt.
Encl: (Revised
Prudential Regulation No. 17)
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