ISLAMABAD: The government has decided to check involvement of money laundering and terror financing in national saving schemes as per recommendations of Financial Action Task Force (FATF).
In this regard, the Central Directorate of National Savings (CDNS) intends to hire the services of a commercial bank regulated by State Bank of Pakistan (SBP) for conducting Anti-Money Laundering (AML) – Countering Financing Terrorism (CFT) compliance under a third party arrangement in line with National Saving Schemes (AML-CFT) Rules, 2019, AMLA Act, 2010 and FATF recommendations as applicable on CDNS operations for:
(a) CDNS existing customers (approximate four million)
(b) CDNS new customers.
The CDNS invited interested banks to submit sealed expression of interest (EOI), carefully prepared in accordance with the instructions provided in the EOI documents, to the national savings by December 12, 2019.
According to the documents, the CDNS is in process to comply the AML-CFT regime in NSCs and NSS in line with National Saving Schemes (AML-CFT) Rules, 2019, AMLA Act, 2019 and FATF recommendations as applicable on CDNS operations.
For timely achievement of this purpose CDNS considers it as need of the time to join hand with an IT equipped bank having vast network, skilled human resource and other infrastructure.
As per criteria, the bank should be rated at lest AA+ from local rating agencies and should have more than 500 broad based branches network across the country.
The bank should have a robust, scalable, secure and efficient core banking system and underlying infrastructure, Fraud Monitoring System, Alternate Delivery Channels (ATMs, Internet Banking, or Branchless Banking Agents etc.), information security governance, and disaster recovery and business continuity arrangements.
The selected bank would require to perform screening, Know Your Customer (KYC) due diligence/enhanced due diligence, and risk profiling of all existing customers of CDNS. The bank has to complete screening of around 4 million existing customers against applicable sanctions list in six months and complete the risk profiling in 12 months after entering into 3rd party arrangement.
The bank shall also require to carry out transaction monitoring of CDNS customers and generate Suspicious Transactions Report (STRs) and CTRs as per requirements.