Karachi, August 17, 2025 – The State Bank of Pakistan (SBP) has instructed banks to adopt stricter compliance procedures under the Anti-Money Laundering (AML) Act 2010, including the option of terminating customer relationships in cases of repeated suspicious activity.
The directive follows the central bank’s release of its new Framework for Managing Risks of Trade-Based Money Laundering and Terrorist Financing, which requires banks to closely verify all financial instruments (FIs) against shipping and customs documentation.
According to the SBP, banks must cross-check Goods Declaration (GD) forms and data available through the Pakistan Single Window (PSW) with the particulars on financial instruments. Any mismatch in quantity, product type (H.S. Codes), or per-unit price must trigger further investigation.
👉 What does this mean for businesses?
• If details on shipping documents don’t match the financial instruments, banks will ask for clarification.
• Unsatisfactory responses may lead to reassessment of the customer’s risk profile.
• In serious cases, the matter could be escalated to senior management and possibly result in filing a Suspicious Transaction Report (STR).
The SBP has also emphasized that where customers consistently display questionable conduct, banks are empowered to take stronger action—including termination of relationships—in line with AML provisions.
👉 Special focus on multiple shipments
The framework highlights that when several consignments are cleared under a single FI, banks must ensure that all relevant documents are routed through them. This step is designed to reduce risks linked to money laundering, terrorist financing, and proliferation financing.
By tightening oversight, the SBP aims to improve the integrity of Pakistan’s trade and financial system while ensuring compliance with global anti-money laundering standards.