The Presidents/Chief Executive Officers

All Microfinance Banks

Dear Sir,

Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Regulations for Microfinance Banks

In order to mitigate various risks arising from money laundering and financing of terrorism, it has been decided to strengthen the existing Prudential Regulations on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Regulations for Microfinance Banks (MFBs).

2. These regulations are in addition to and not in derogation of requirements under the Anti Money Laundering Act 2010, Rules/Regulations issued there-under besides measures taken by MFBs pursuant to their internal/group policies and Recommendations of the Financial Action Task Force or any other AML/CFT standards prescribed by any global body.
3. The above regulations are being issued in exercise of powers conferred under Section 31 of the Microfinance Institutions Ordinance, 2001 and shall be enforceable with immediate effect.

MFBs shall align their AML/CFT risk assessment procedures in accordance with Revised AML/CFT Regulations within three months from issuance of this circular and any non-compliance or circumvention of these requirements will attract penal actions, as per law.

4. Please acknowledge receipt.

Encl: Revised AML/CFT Regulations