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Circulars

Guidelines on Compliance of Government of Pakistan’s Notifications issued under United Nations Security Council (UNSC) Resolutions

February 17, 2017
6202

The Presidents/Chief Executives

All Banks/DFIs/MFBs

Dear Sir / Madam

Guidelines on Compliance of Government of Pakistan’s Notifications issued under United Nations Security Council (UNSC) Resolutions

Please refer to the Guidelines issued vide BPRD Circular No. 03 dated February 24, 2015 on the above subject.

  1. In this regard, the paragraph 6 of the Guidelines has been amended as under:
Existing Provision Revised Provision
Paragraph 6: Banks/DFIs/MFBs are also advised not to provide any banking services to proscribed entities and persons or their associated persons, whether under the proscribed name or with a different name as required under paragraph 25 of Regulation-1 of Anti Money Laundering and Combating the Financing of Terrorism (AML/CFT) Regulations. The banks/DFIs/MFBs should monitor their relationships on a continuous basis and ensure that no such relationship exists. If any such relationship is found, the same should be immediately reported to Financial Monitoring Unit (FMU) and other actions shall be taken as per law. Paragraph 6: Banks/DFIs/MFBs should not provide any banking services to proscribed entities and persons or their associated persons as required under Anti Money Laundering and Combating the Financing of Terrorism (AML/CFT) Regulations. For this purpose, necessary measures should be taken including but not limited to the following controls:
a) In case of entity accounts, it should be ensured that their beneficial owners, directors, members, trustees and authorized signatories are not linked with any proscribed entities and persons, whether under the same name or with a different name.
b) The association of individuals/ entities with proscribed entities and persons may be determined on the basis of appropriate screening of sanctions lists/ watch lists, publically known information or linkages on the basis of online NTN verification, government or regulatory sources, reliable media information, etc.
c) While opening new accounts or extending services to customers, any similarity between the identifying information of the customer and that of proscribed entities and persons including national identification number, address, etc may be viewed with suspicion and properly investigated for necessary action as per requirements.
d) The banks/DFIs/MFBs should monitor their relationships on a continuous basis and ensure that no such relationship exists. If any such relationship is found, the same should be immediately reported to Financial Monitoring Unit (FMU) and other actions be taken as per law.
  1. Banks/DFIs/MFBs are advised to align their existing monitoring function/systems with above provisions within a period of 06 months from the issuance of these amendments.
  2. The updated version of the Guidelines is enclosed.
  3. Please acknowledge receipt.

Enclosed:

Yours sincerely,

Shaukat Zaman
Director