Central Directorate of National Savings seeks to meet FATF requirements to go digital

• The World Bank is providing a management information system (MIS) and an enterprise resource solution to CDNS.
• The transition to digitization would be achieved within two to three years

The Central Directorate of National Savings (CDNS), Pakistan’s premier saving institute, is in process of digitization and has sought the World Bank's help, as it seeks to meet requirements set by the Financial Action Task Force (FATF).

CDNS director Kamran Anwar told the Arab News that the Financial Infrastructure and Inclusion Project (FIIP) of the World Bank is providing a management information system (MIS) and an enterprise resource solution to CDNS which will allow CDNS transition from analog to digital.

As per the report, the transition to CDNS digitization would be achieved within two to three years.

When asked about the measures taken by CDNS to meet FATF requirements, Anwar said “We have promulgated the AML/CFT (Anti Money Laundering/ Combating the Financing of Terrorism) rules 2019 to effectively implement the legal cover and FATF recommendations.”

Just days ago the Finance Division informed that CDNS is committed to mitigating the deficiency to improve customer service delivery and to comply with the FATF recommendation to safeguard the investors' interests.

Banks under the supervision of the SBP have already put in place all the required systems and KYCs (Know Your Customers) processes to comply with the FATF recommendations, said the division in a statement.

In order to implement this requirement, Finance Division through promulgation of National Savings Schemes (AML-CFT) Rules, 2019 has decided to engage an AML-CFT compliant bank, through competitive bidding, to put in place the requirements as well as the necessary training of employees of National Savings.

Accordingly, Expression of Interest, in consultation with SBP, has been sought from the interested bank to conduct KYC and other requirement of new as well as existing clients of CDNS. This will include the biometric Verisys and screening of potential clients in UN Proscribed person List.

All these screenings are meant to stop any ill-gotten money to become part of financial system and to safeguard the valued investor from the menace of Money Laundering and Terrorist Financing, said the division.

The CDNS achieved a collection net target of Rs112 billion by December 20, of  fiscal year 2019-20. The CDNS has set Rs 350 billion annual collection target for the year 2019-20 as compared to Rs324 billion for the previous year's 2018-19.