The Central Directorate of National Savings (CDNS) has decided to screen all customers of national savings schemes.
The CDNS announced its intention to collaborate with a commercial bank, regulated by the State Bank of Pakistan (SBP), to strengthen its Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) compliance measures. This third-party arrangement aligns with the National Savings Schemes (AML-CFT) Rules, 2019, AMLA Act, 2010, and Financial Action Task Force (FATF) recommendations applicable to CDNS operations.
CDNS requires the selected bank to ensure AML-CFT compliance for: (a) Approximately four million existing CDNS customers. (b) New customers of CDNS.
To facilitate this initiative, CDNS has invited interested banks to submit sealed expressions of interest (EOI) by December 12, 2019. The EOI should be carefully prepared in accordance with the instructions provided in the EOI documents issued by CDNS.
Documents indicate that CDNS is actively working to comply with the AML-CFT regime within National Savings Certificates (NSCs) and National Savings Schemes (NSS). This initiative follows National Savings Schemes (AML-CFT) Rules, 2019, AMLA Act, 2019, and FATF guidelines applicable to CDNS operations.
Recognizing the urgency of compliance, CDNS aims to partner with an IT-equipped bank possessing a widespread branch network, skilled workforce, and advanced infrastructure. The ideal bank should be rated at least AA+ by local rating agencies and maintain a network of more than 500 branches nationwide.
The selected bank must have a robust, scalable, and secure core banking system, along with a fraud monitoring system, alternate delivery channels (such as ATMs, internet banking, and branchless banking agents), information security governance, disaster recovery solutions, and business continuity arrangements.
Under this arrangement, the chosen bank will be responsible for screening, conducting Know Your Customer (KYC) due diligence, and risk profiling for all CDNS customers. Specifically, the bank will screen approximately four million existing customers against applicable sanctions lists within six months and complete risk profiling within twelve months of the agreement’s commencement.
Additionally, the selected bank will conduct transaction monitoring for CDNS customers, generating Suspicious Transaction Reports (STRs) and Currency Transaction Reports (CTRs) in accordance with regulatory requirements. This initiative aims to ensure that CDNS adheres to national and international compliance standards, safeguarding the integrity of its financial operations.