Supervisory board setup to identify banned orgs investing in national savings schemes

In its implementation of yet another condition of the Financial Action Task Force (FATF), the federal government has set up a supervisory board to identify banned organizations and their affiliates investing in national savings schemes.

As per details, the supervisory board set up by the federal government will ensure implementation of the National Savings Rules and take action against violators of the rules while preventing money laundering and fundraising for terrorism.

The government will also confiscate suspicious investments in national savings schemes and take action against those involved. Officials from the Ministry of Finance, SBP, SECP, FMU will be part of the supervisory board.

Furthermore, Additional Finance Secretary has been appointed as Chairman, Ministry of Finance Supervisory Board. In addition, the DG Financial Action Task Force has been made a member of the Supervisory Board.

Earlier, the State Bank of Pakistan (SBP) has issued the Anti Money Laundering, Combating the Financing of Terrorism, and Countering Proliferation Financing (AML/ CFT / CPF) Regulations for SBP’s Regulated Entities (REs). The State Bank with the objective to preserve the integrity, soundness and safety of the financial system, has been endeavoring to prevent the possible use of its REs for money laundering, terrorist financing, proliferation financing and other illicit activities. Accordingly, SBP has issued these regulations under powers conferred to it under Section 6A (2) of the Anti-Money Laundering Act, 2010. The SBP has warned that any violation of these regulations will attract penal as well as administrative actions under the applicable laws including the AML/ CFT Sanctions Rules, 2020.