Money and banking drive economic activity by facilitating transactions, savings, and investments. Banks manage financial resources, offer credit, and regulate money supply, ensuring stability and growth in Pakistan’s financial sector.
KARACHI: State Bank of Pakistan (SBP) on Tuesday updated guidelines for banks related compliance on notification issued under United Nations Security Council (UNSC) Resolutions.
The SBP issued circular addressing chief executives and presidents of banks, development financial institutions and microfinance banks, referring to the guidelines on Compliance of Government of Pakistan’s Notifications issued under United Nations Security Council (UNSC) Resolutions, issued vide BPRD Circular No. 03 of 2015 as amended from time to time.
The SBP said that in order to further enhance the understanding of Targeted Financial Sanctions regimes for Terrorism Financing and Proliferation Financing, under UNSC Resolutions, and to further align said regimes with the requirements embodied in FATF Recommendations, SBP has decided to update the subject guidelines.
KARACHI: The Pak Rupee gained seven paisas against dollar on Tuesday to close the year 2019. The local currency appreciated despite demand for import and corporate payments, dealers said.
The rupee ended Rs154.85 to the dollar from previous day’s closing of Rs154.92 in interbank foreign exchange market.
Currency dealers said that the rupee witnessed pressure during the day due to demand for import and corporate payments.
However, inflows and positive economic indicators helped the rupee to close the year with gain.
The foreign currency market was initiated in the range of Rs154.90/Rs154.95. The market recorded day high of Rs154.92 and low of Rs154.85 and closed at Rs154.85.
The exchange rate in open market witnessed no change in the local currency. The buying and selling of the dollar was recorded at Rs154.70/Rs155.00, the same previous day’s level, in cash ready market.
KARACHI: State Bank of Pakistan (SBP) on Tuesday issued orders to microfinance banks (MFBs) to ensure verification of customers in order to mitigate various risks arising from money laundering and financing terrorism.
A circular issued by the central bank referred it previous instructions issued through Circular No. 02 dated October 05, 2018 to mitigate various risks arising from money laundering and financing of terrorism.
As stipulated under Regulation M-1, ongoing Customer Due Diligence (CDD) is an essential aspect of effective KYC/CDD procedures and applies to all customers to whom the MFB is offering any type of service(s).
Accordingly, it is reiterated that MFBs must ensure strict observance of all applicable instructions including identification and verification of customers and their beneficial owner(s) and obtain information on the purpose and intended nature of business relationship.
The monitoring mechanism in place at MFBs should be adequately resourced and strengthened to ensure that the transactions being conducted in the accounts are consistent with the MFB’s knowledge of their customer, business, risk profile and the source of funds.
With the objective to know the ultimate beneficial ownership of accounts/ transactions, the MFBs shall enhance their efforts to obtain relevant information and examine background and purpose of all complex, unusual large transactions and unusual patterns of transactions, which do not commensurate with customer profile or have no apparent economic or visible lawful purpose.
MFBs are also advised to refer to the SECP Circular No. 16 of 2018 dated August 29, 2018 (https://www.secp.gov.pk/laws/circulars/) through which the Commission has directed all companies to enhance their efforts to obtain and maintain up-to-date information relating to their ultimate beneficial owners, i.e. natural persons or individuals who ultimately own or control the company.
Therefore, MFBs may also seek such ultimate beneficial ownership information from their relevant customers during the CDD process.
Moreover, with the view to further strengthen the measures already in place and mitigate the money laundering and terrorist financing risks, MFBs are advised to immediately take following steps:
a) Ensure optimal utilization of biometric technology and carry out biometric verification of the existing customers (if already not done) as per following timelines and thresholds:
Priority
Category of Customers
Threshold
Timeline
High Priority
Listed /Public Limited Companies
Account turnover exceeding PKR 1,000 million for any of the calendar year 2017, 2018 or for a period since January 1, 2019 to September 30, 2019.
31st January, 2020
Private Limited Companies
Account turnover exceeding PKR 500 million for any of the calendar year 2017, 2018 or for a period since January 1, 2019 to September 30, 2019.
All customers except Public/Private Limited Companies
Account turnover exceeding PKR 250 million for any of the calendar year 2017, 2018 or for a period since January 1, 2019 to September 30, 2019.
Medium Priority
Listed /Public Limited Companies
Account turnover from PKR 500 million to PKR 1000 million for any of the calendar year 2017, 2018 or for a period since January 1, 2019 to September 30, 2019.
31st March, 2020
Private Limited Companies
Account turnover from PKR 250 million to PKR 500 million for any of the calendar year 2017, 2018 or for a period since January 1, 2019 to September 30, 2019.
All customers except Public/Private Limited Companies
Account turnover from PKR 100 million to PKR 250 million for any of the calendar year 2017, 2018 or for a period since January 1, 2019 to September 30, 2019.
Normal
All other accounts not covered in the above categories
30th June, 2020
Note
Biometric verification of persons authorized to open and operate the account of legal entities or legal arrangements shall be conducted.
In case of customers whose eligible identity documents are other than biometrically verifiable documents, re-validation/ verification of identity shall be done based on documents, data or information obtained from customer and/or from reliable and independent sources having regard to MFB’s own assessment of materiality and risk.
Submit compliance status in respect of biometric verification of their existing/legacy portfolio of customers within 15 days of aforesaid timelines.
Furthermore, MFBs are advised to adhere to the following instructions regarding biometric verification of existing customers presently outside Pakistan:
Type of Customer
Treatment
a)
Non-resident Pakistanis (NRPs)
As defined in Income Tax Ordinance, 2001 – Chapter 5, Division II, Section 82
For customers who fall under the definition of NRP, the MFB may obtain a signed undertaking from the customer invariably containing the following:
• Customer’s NRP status along with proof (i.e. copy of valid passport, visa, exit stamp, resident permit, etc.).
• Copy of valid identity document.
• Account number(s) of the customer’s account(s) maintained with the bank as per customer record.
• Undertaking by the customer to inform the bank of any change in residency status.
The MFB, after verification of the customer’s signature from its record, shall accordingly update/ reflect the NRP status in the customer profile.
For such customers, as an alternative to biometric verification, the MFB may conduct fresh NADRA Verisys using the information provided by the customer.
b)
Resident Pakistanis temporarily outside Pakistan
For customers who do not qualify under the definition of NRP, but are currently/ temporarily outside Pakistan for any reason, the MFB may obtain reasonable evidence/ proof from the customer regarding his/ her absence from the country (i.e. copy of valid passport, visa, exit stamp, resident permit, etc.) and the expected date of return.
For such customers, as an alternate to biometric verification, the MFB may conduct fresh NADRA Verisys using the information provided by the customer.
The MFB may retain the NADRA Verisys in place of biometric verification until the customer returns, subject to reasonable time limit (not more than six months) to be defined by MFB. Biometric verification of such customers shall be done immediately upon the customer’s return to the country.
c)
Joint Accounts where one account holder is outside Pakistan (NRP/ temporarily)
For joint account holders, treatment of biometric verification should be done according to the status of respective individual. Biometric verification should be conducted for the joint account holder who is resident Pakistani, while for other joint account holders, the relevant procedure described at (a) and (b) above should be adopted.
Moreover, MFBs may operate accounts on the basis of NADRA Verisys in genuine cases, in line with Frequently Asked Questions (FAQ No. 8, Annexure – I) on Use of Biometric Technology, provided MFBs are satisfied and proper reason/ proof is recorded/ retained by them.
For such cases in line with Para-7 above, in the absence of biometric verification, MFB may ensure that requisite identification document has been obtained, marked as ‘original seen’ by their staff and verified through NADRA Verisys.
Moreover an undertaking should be obtained from the customer declaring that the particulars provided to the MFB are correct and that their staff has verified the same. The declaration should be endorsed by the Branch Manager and should be available in the bank’s centralized record.
KARACHI: The Pak Rupee appreciated by 11 paisas against dollar on Monday owing to improved economic indicators.
The rupee ended Rs154.92 to the dollar from last Friday’s closing of Rs155.03 in interbank foreign exchange market.
Currency dealers said that the improved foreign exchange reserves and narrowing current account deficit improved the rupee value.
The foreign currency market was opened in the range of Rs154.85 and Rs154.90. The market recorded day high of Rs155.00 and low of Rs154.90 and closed at Rs154.92.
The exchange rate in open market witnessed slight change in rupee value. The buying and selling of dollar was recorded at Rs154.70/Rs155.00 from last Friday’s closing of Rs154.60/Rs155.00 in cash ready market.
KARACHI: The State Bank of Pakistan (SBP) on Friday declared bank holiday on January 01, 2020 on account of financial close of banking companies.
In a circular issued to presidents and chief executives of all banks, development financial institutions and microfinance banks, the SBP informed that the central bank will remain closed for public dealing on Wednesday, January 1, 2020, which will be observed as ‘Bank Holiday’.
All banks / DFIs / MFBs shall, therefore, remain closed for public dealing on the above date. However, all employees of banks / DFIs / MFBs will attend the office as usual, the SBP said.
KARACHI: The Pak Rupee gained four paisas against dollar on Friday amid higher demand of greenback for import and corporate payments.
The rupee ended Rs155.03 to the dollar from previous day’s closing of Rs155.07 in interbank foreign exchange market.
Currency dealers said that the rupee was under pressure during the day due to upcoming weekly holidays. Besides, the financial year ending for many corporate entities also escalated the demand for the greenback.
The dealers said the inflows of export receipts and remittances helped the rupee to appreciate during later in the day.
The exchange rate in open market also witnessed appreciation in rupee value. The buying and selling of dollar was recorded at Rs154.60/Rs155 from previous day’s closing of Rs154.70/Rs155.10 in cash ready market.
KARACHI: State Bank of Pakistan (SBP) on Friday announced that banks will observed extended working hours to facilitate taxpayers in payment of duty and taxes on December 31, 2019.
In order to facilitate the collection of government receipts / duties / taxes, it has been decided that authorized branches of National Bank of Pakistan (NBP) as well as field offices of SBP Banking Services Corporation (SBP-BSC) will observe extended banking hours up to 9:00 PM on December 31, 2019 (Tuesday).
Accordingly, NBP branches will settle their transactions with respective SBP-BSC field offices on the same day i.e. December 31, 2019 for which purpose a special clearing has been arranged at 7:00 P.M. by the NIFT.
All banks are, therefore, advised to keep their concerned branches open on December 31, 2019 (Tuesday) till such time that is necessary to facilitate the special clearing for Government transactions, the SBP said.
KARACHI: The Pak Rupee depreciated by 17 paisas against dollar on Thursday owing to higher demand for import and corporate payments, dealers said.
The rupee ended Rs155.07 to the dollar from December 24, 2019 closing of Rs154.90 in interbank foreign exchange market.
The dealers said that the rupee was remained under pressure during the day due to higher demand for the greenback. They said that due to holiday on account of Qaid-e-Azam Day and Christmas the market witnessed higher demand for dollar on Thursday.
The foreign currency market was initiated in the range of Rs154.85 and Rs154.90. The market recorded day high of Rs155.08 and low of Rs154.87 and closed at Rs155.07.
The exchange rate in open market also witnessed depreciation in rupee value. The buying and selling of the dollar was recorded at Rs154.70/Rs155.10 from December 24, 2019 closing of Rs154.60/Rs154.90 in cash ready market.
KARACHI: State Bank of Pakistan (SBP) has extended the date for banks regarding issuance of machine authenticated Rs50 banknotes.
In a notification issued on Thursday, the central bank said that considering the difficulties faced by banks in machine processing of lower denomination banknotes under the Currency Management Strategy (CMS), it had been decided to extend the effective date for issuance of machine authenticate Rs50 banknotes until January 4, 2021.
The banks are however encouraged to gradually adopt machine processing and authentication of Rs50 banknotes.
Earlier, the banks were required to process lower denomination banknotes under the CMS from January 02, 2020.
The SBP on August 31, 2017 issued Currency Management System, which is as follow:
Considering the various aspects of implementation and feedback of the stakeholders, the following changes have been made in the strategy:
I. Sealed Cassettes based feeding of ATMs:
The instructions contained at section C (iii) of FD Circular No.03/2015 dated August 26, 2015 regarding use of standardized purpose built cassettes for feeding of ATMs shall stand amended as under:
a) The requirement of cassette based feeding of ATMs has been made optional for the time being. The banks are however encouraged to plan for gradual movement towards cassette based feeding to comply with our instructions. SBP will continue to monitor the situation on periodic basis for a policy decision.
b) The banks may alternatively use sealed bags or trays for feeding of ATMs. However the banks shall ensure that sealing and unsealing of bags/trays and replenishment of ATMs is carried out under proper CCTV controlled environment.
c) The on-site ATMs can be fed by their respective branches provided that the end to end process from cash processing to ATM feeding is covered by CCTV cameras.
d) Other requirements as advised under section C of FD Circular No.03/2015 dated August 26, 2015 shall remain applicable.
II. Application of Strategy on lower banknote denominations:
The instructions contained at section-I of FD Circular No.01/2016 dated January 25, 2016 regarding implementation of phase-II of strategy for all denomination of banknotes w.e.f. 2nd January 2018 shall stand amended as under:
a) The banks will start disbursing machine authenticated banknotes of Rs 100 w.e.f. 2nd January 2018 and Rs 50 w.e.f. 2nd January 2019 respectively.
b) The lower banknote denominations of Rs 20 and Rs 10 have been excluded from Currency Management Strategy.
III. Banknote Packing Instructions (BPI)
The Banknote Packing Instructions issued vide FD Circular No.02/2017 dated March 10, 2017 shall stand amended as under:
a) The effective date of instructions contained at section 1.2 and 1.3 of BPI has been extended from 3rd July 2017 to 1st December 2017.
The banks may deposit the cash processed and packed by other bank(s) with SBP BSC or offer the same in IEC. The earlier requirement that the cash processed and packed by the depositing bank can only be deposited with SBP BSC or offered for exchange in IEC shall stand withdrawn. However, in case of any discrepancy, the bank which has processed and packed the cash shall be responsible.
