Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Regulations for Banks and DFIs


This document addresses updated AML regulations for banks and DFIs within the State of Pakistan as  means to combat the financing of terrorism. The document includes a preliminary list of acronyms and defintions of specific terms used in reference to the existing regulations of the State of Pakistan.  

The State Bank of Pakistan updated Anti-Money Laundering regulations in December of 2016 in regards to issues of customer due diligence (CCD), correspondent banking, wrie/fund transfers, reporting of transactions (STRs/CTRs), record keeping, and internal controls, policies, compliance, auditing, and training; in all 6 regulations have been updated. CDD measures largely state the necessity of verfying the identity of all customers and accounts. Similarly, correspondent banking updates address the importance of ascertaining the suitability of respondent banks and of maintaining proper correspondent relations between banks. Again, updates to wire transfer/fund transfer regulations assert the necessity of verfying identification of ordering institutions. Regulation 4, "reporting of transcations," maintains that all banks and DFIs must comply in reporting suspicious transactions and encourages technological upgrades in order to ensure that risks are assessed. Furthermore, banks and DFIs must maintain the required records on all transactions. 

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