The State Bank of Pakistan (SBP) has directed banks to provide special assistance to Politically Exposed Persons (PEPs) and ensure opening of their bank account within two working days, after meeting all due diligence requirements. In order to ensure fair and equitable treatment of bank's customers referred to as Politically Exposed Persons (PEPs), the State Bank has devised the Standard Operating Procedures (SOPs) to facilitate and streamline account opening process of PEPs without compromising due diligence requirements prescribed under AML / CFT regime.
SBP has also warned that any non-compliance of these SOPs would be strictly dealt with penal provisions of the Banking Companies Ordinance, 1962. As per SOPs, devised by SBP, the bank will provide special assistance to PEPs and treat them with respect and due care during the account opening process and a bank's focal person will also responsible to facilitate PEPs and monitor the progress of their request.
The bank upon receiving account opening request from PEP will ensure that the basic requirements like Account Opening Form/Specimen Signature Card and Biometric Verification of the customer should be completed on the same day.
In addition, the person will be guided regarding specific requirements / formalities required for opening of an account on the same day. Further, the concerned branch will report the details of the request made by PEP to the focal person nominated by the bank.
Within two working days of receipt of documents from PEP, the bank will inform him /her in writing, the deficiencies, if any, in the documents or further clarifications required and once the deficiencies have been removed by PEP and all due diligence requirements have been satisfactorily completed, the account will be opened by the bank within two working days, the SBP directed. In case the bank decides to refuse any request for account opening, within two working days, the reasons of refusal will be conveyed in writing to the applicant in line with the SBP's instructions.
Banks have been asked to maintain separate files of all approved and rejected cases of PEPs as SBP inspection team during inspection of the bank may review the record especially the rejected cases;
Bank will also report the details of rejected cases of PEPs to the Director, Banking Conduct & Consumer Protection Department of SBP on monthly basis within 7 days of the close of every month;
PEPs having grievance /disagreement with bank's decision has been asked to contact the bank's focal person nominated for the purpose. Banks are already been advised to prominently display the contact details of their and SBP's focal person for PEP's at their branches.
The focal person will guide PEP and ensure early resolution of the issue in light of applicable policies, rules & regulations. If the grievance of PEP is not resolved within 15 days after registration of his/her complaint with bank's focal person or if he/she is not satisfied with the conclusion, then he/she may directly contact the focal person appointed by SBP.
The bank's focal persons have been asked to maintain data for all requests/grievances received from PEPs (allocating unique diary number) in order to monitor its progress at different stages. Banks are advised to immediately disseminate these instructions down the line to all of their branches and business locations to ensure compliance of the same in letter and spirit. Otherwise any non-compliance would be strictly dealt with penal provisions of Banking Companies Ordinance, 1962.