Pakistan needs further improvements in areas of transaction monitoring through sophisticated technology, coupled with appropriate human resources for identifying and reporting suspicious transactions, under the laws of Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT).
This was stated by Executive Director – Banking Policy & Regulations Group at a seminar while highlighting the importance of implementing AML/CFT regime in Pakistan, its current situation of compliance and global prospective.
Besides presence of senior officials from supervisory departments of SBP, relevant officers from Banks, Developments Finance Institutions (DFIs), Microfinance Banks (MFBs), Exchange Companies and Payment System Operators also participated in the seminar.
He urged reporting entities to refine their efforts on risk based AML/CFT compliance and prepare for the upcoming AML/CFT assessment.
Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) compliance is a global phenomenon which has implications for economic and trade related activities with the rest of the world.
In his presentation, the senior officer of the SBP discussed in detail the essential elements of technical compliance and effectiveness of FATF Recommendations in the context of the upcoming AML/CFT mutual evaluation of Pakistan.
During the session, the requisite actions including preparation of statistics/responses to FATF assessment criteria came up for discussion and it was observed that the whole process would require dedicated effort and seamless coordination from all AML/CFT stakeholders.
In accordance with Asia Pacific Group on Money Laundering (APG) membership rules, every member country is required to undergo a process of Mutual Evaluation/Assessment to determine the level of compliance with the international AML/CFT standards.
Mutual evaluation involves a desk-based review as well as an on-site visit by a team of experts drawn from the member countries to assess a country’s AML/CFT systems.
Previously, Pakistan has undergone two mutual evaluations in 2005 & 2009 and next mutual evaluation on FATF’s revised standards is expected to start in the first quarter of 2018.