AML/CFT regulations: Banks, DFIs told to update customers' record

KARACHI: The State Bank of Pakistan (SBP) has directed banks/DFIs to update records of their customers for ensuring efficient and reliable communications and to meet the requirements of Anti Money Laundering/Combating Financing of Terrorism (AML/CFT).

According to the SBP, it has been observed that customers including (overseas Pakistani/walk in/occasional) are experiencing problems with regard to operation in their bank accounts, ensuring execution of financial transactions by them and getting financial services from banks/DFI.

Therefore, some revisions are being made in the existing AML/CFT requirements to facilitate such customers. As per fresh directives from SBP, banks/DFIs may use the Nadra Verisys in place of obtaining certified photo copies of required Nadra identity documents and bio metric verifications wherever required as per the SBP AML/CFT Regulations including for request of activation of dormant account by customers. Banks/DFIs have been asked to retain the Nadra Verisys for record keeping requirements digitally or hard copy.

In addition, the SBP has directed the Banks/DFIs to update records of their customers with regard to their postal address or email address or register mobile number or land line number. They may use either of these medium for ensuring efficient and reliable communications with their customers including where ever customer request/instruction is desired as per requirement of AML/CFT regulation including for activation of dormant accounts, it added.

Further, in order to help mitigate the risk of spread of COVID-19, which may arise from physical contact/interaction during account opening activities, some relaxation were granted to banks/DFIs. Keeping in view the ongoing impact of COVID-19 pandemic in the country, SBP has also decided to extend the validity of the some measures stipulated in above referred Circular Letter from 30th June 2020 to December 31, 2020.

According to SBP, the requirement of originator's and beneficiary's address in wire transfer vide Regulation-3, para (3c & 3e) of AML/CFT Regulations for Banks/DFIs has been amended and now there is no need of addresses of originator's and beneficiary's.

Bank/DFI shall include the originator's CNIC/passport number and the beneficiary's CNIC/passport number in the message or payment instruction which should accompany or remain with the wire transfer throughout the payment chain. These instructions are enforceable with effect from July 1, 2020.

Copyright Business Recorder, 2020