To comply with the directions of Financial Action Task Force (FATF), the Securities and Exchange Commission of Pakistan (SECP) has asked securities brokers, insurance companies, non-banking finance companies (NBFCs) and Modarabas to review higher risk categories of customers as per the risk based approach.
Sources told Business Recorder here on Wednesday that the amended Anti Money Laundering and Countering Financing of Terrorism Regulations, 2018 will tackle with customers having business relationship with high risk countries as specified by Financial Action Task Force (FATF).
The SECP said that the regulated person shall periodically review the adequacy of customer information obtained in respect of customers and beneficial owners and ensure that the information is kept up to date and relevant, by undertaking reviews of the existing records, particularly for higher risk categories of customers and the review period and procedures thereof should be defined by regulated person in their AML/CFT policies, as per risk based approach.
Moreover, the regulated person should monitor the relationships with the entities or individual on a continuous basis and ensure that no such relationship exists directly or indirectly, through ultimate control of an account and where any such relationship is found, the regulated person shall take immediate action as per law, including freezing the funds and assets of such proscribed entity/individual and reporting to the Commission, the SECP added.
The records of identification data obtained through CDD process like copies of identification documents, account opening forms, know your customer forms, verification documents, other documents and result of any analysis undertaken along with records of account files and business correspondence, shall be maintained for a minimum period of five years after termination of the business relationship, the SECP added.
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