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Tag: National Saving Schemes

  • Explaining source of income, annual income made mandatory for NSS investors

    Explaining source of income, annual income made mandatory for NSS investors

    ISLAMABAD: The government has made mandatory for investors of National Saving Schemes (NSS) to explain source of income and annual income.

    The government has notified National Savings Schemes (AML and CFT) Rules, 2019 in order to comply with recommendations of Financial Action Task Force (FATF).

    Previously, the draft of rules was notified on December 19, 2019 for taking feedback from stakeholders.

    Under the rules, the Central Directorate of National Savings (CDNS) or authorized third party will conduct Customer Due Diligence (CDD) and Know Your Client (KYC) of all existing and new investors of national saving schemes.

    All the existing and new investors of national savings schemes have to provide information about source of income and annul income for making investment.

    Following CDD measures will be taken-

    (a) when establishing business relationship;

    (b) while dealing with occasional customers and walk-in customers in line with sub-rule (i) of rule 4.

    (c) in other situations and scenarios when there is suspicion of money laundering or financing of terrorism, regardless of threshold; and

    (d) when there are doubts about the veracity or adequacy of previously obtained customer identification data.

    The office of issue or third party shall identify the occasional customers and walk-in-customers and verify their identity using reliable, independent source of information, i.e. NADRA verification system (Verisys) or biometric identification system (Biosys).

    Every customer, whether permanent or occasional and whether natural or legal person or legal arrangement, shall be identified for establishing business relationship and for the purpose following information shall be obtained, verified using reliable, independent source documents, data or information and recorded namely:

    (a) full name as per identity or registration documents;

    (b) national identity card, passport, national identity card for overseas Pakistanis, Pakistan origin card or alien registration card number, etc.

    (c) registration or incorporation number of business, if applicable;

    (d) residential address, telephone numbers and e-mail, if available;

    (e) business address, telephone numbers and e-mail, if available;

    (f) date of birth;

    (g) date and place of registration or incorporation of business, if applicable;

    (h) nationality

    (i) place of birth;

    (j) national tax number (NTN), if applicable;

    (k) nature of business and location, if applicable;

    (l) sources of earnings;

    (m) customer’s net worth in respect of legal persons, legal arrangements and high risk customers; and

    (n) annual income

  • National Savings screening meant to stop ill-gotten money: Finance Division

    National Savings screening meant to stop ill-gotten money: Finance Division

    ISLAMABAD: The Finance Division on Monday said that the screening of all saving schemes is meant to stop any ill-gotten money to become part of financial system and to safeguard the valued investors from the menace of Money Laundering and Terrorist Financing.

    The Ministry of Finance, while clarifying news reports, said that Central Directorate of National Savings (CDNS) is committed to mitigating the deficiency to improve customer service delivery and to comply with the FATF recommendation to safeguard the investors’ interests.

    Banks under the supervision of SBP have already put in place all the required systems and KYCs (Know Your Customers) processes to comply with the FATF recommendations.

    In order to implement this requirement, Finance Division through promulgation of National Savings Schemes (AML-CFT) Rules, 2019 has decided to engage an AML-CFT compliant bank, through competitive bidding, to put in place the requirements as well as the necessary training of employees of National Savings.

    Accordingly, Expression of Interest, in consultation with SBP, has been sought from the interested bank to conduct KYC and other requirement of new as well as existing clients of CDNS.

    This will include the biometric verisys and screening of potential clients in UN Proscribed person List.

    All these screenings are meant to stop any ill-gotten money to become part of financial system and to safeguard the valued investor from the menace of Money Laundering and Terrorist Financing.

    Finance Division therefore reiterates that the steps of the Government are aimed at making the CDNS compliant with the FATF requirement and are not intended to jeopardize the interests of the account holders / customers.

    Moreover, third-party arrangement will make the organization i.e CDNS more transparent and viable for the customers and will not in any case affect its financial business.

  • National Saving Scheme AML, CFT Rules: Supervisory board constituted for monitoring

    National Saving Scheme AML, CFT Rules: Supervisory board constituted for monitoring

    ISLAMABAD: The ministry of finance has constituted supervisory board to provide independent oversight of implementation of National Savings Schemes (AML and CFT) Rules, 2019.

    The advisory board has been comprised of:

    01. Additional Finance Secretary (Budget): Chairman

    02. Syed Jahangir Shah, Director, State Bank of Pakistan: Member

    03. Ms. Tanzila Nisar Mirza, Additional Director, Securities and Exchange Commission of Pakistan: Member

    04. Adnan Imran, Director, Financial Monitoring Unit: Member

    05. Joint Secretary (B-1), Ministry of Finance: Member/Secretary

    As per the rules, the Supervisory Board shall provide independent oversight of implementation of these rules and take necessary enforcement actions against violations thereof.

    The Finance Division shall provide all secretarial and administrative support to the Board for effective discharge of its responsibilities.

    The Board shall, within two months of the commencement of these rules, devise its SOPs for supervision of CDNS to ensure compliance with AML and CFT requirements.

    The Board shall have powers to issue appropriate standard operating procedures(SOPs), demand receipt of appropriate management information system on periodical basis, direct CDNS to take such actions as may be required to address deficiencies pointed out during such assessments and advise such enforcement actions as it may deem necessary.

    The Board shall have powers to direct CDNS to take all reasonable measures to ensure compliance with provisions of the AML Act, 2010 and these rules.

    The Board shall have powers to compel production of any information or record it may require for the discharge of its responsibilities and CDNS shall provide the information and record in such format and within such timelines as may be specified by the Board.

    The Board shall have powers to engage chartered accountant firms from SBP’s approved panel of auditors to conduct onsite examinations, assess ML and TF risks posed, assess corresponding controls and determine compliance with the AML Act, 2010 and these rules and regulations issued from time to time.

    If any provision of these rules, is contravened, or if any default is made in complying with any requirement of these rules or orders or SOPs issued there under, by any officer or official of CDNS, the person who contravened shall be punishable in accordance with the law for the time being in force.