Violations of AML/ CFT/CPF regulations: FIs allowed to file pleas within 120 days of sanctions

KARACHI: The State Bank of Pakistan (SBP) has allowed financial institutions for filing of appeal within 120 days of imposition of sanctions.

According to a circular issued by SBP, the fresh instruction has been issued for filing appeal against sanctions imposed on violations of Anti-Money Laundering, Combating the Financing of Terrorism & Countering Proliferation Financing (AML/ CFT / CPF) regulations, guidelines or instructions.

As per fresh guidelines, the Regulated Entities (REs) including banks, DFIs and Microfinance Banks, in respect of whom sanctions have been imposed, may file an appeal before the Executive Director Banking Supervision Group of SBP within 120 days of imposition of such sanction. Any appeal filed subsequently will be deemed time barred and thus shall not be considered.

Previously, any request for refund of penalty was allowed to file within maximum 120 days of the date of realisation of penalty amount by SBP.

Copyright Business Recorder, 2021