State Bank of Pakistan (SBP) with the objective to preserve the integrity, soundness and safety of the financial system, has been endeavoring to prevent the possible use of the banking sector for money laundering, terrorist financing and other illicit activities. Towards this end, SBP under powers conferred in Section 41 of Banking Companies Ordinance (BCO) 1962 has issued various instructions/ guidelines to the banks/DFIs from time to time.
2. In this regard, SBP has issued comprehensive regulations on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) vide BPRD Circular No. 2 dated September 13, 2012 as amended from time to time.
3. With a view to further align AML/CFT Regulations with requirements embodied in FATF recommendations and observations highlighted in Pakistan’s Mutual Evaluation Report 2018, SBP has decided to amend various provisions of the regulations.
4. These amendments, as per attached annexure will provide further clarity on implementation of AML/CFT requirements by banks/ DFIs.
5. The updated version of the ‘Regulations’ is enclosed.
6. Please acknowledge receipt.