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Tag: source of income

  • 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

  • Investors of saving schemes to explain source of income

    Investors of saving schemes to explain source of income

    ISLAMABAD: Investors of National Saving Schemes (NSS) will explain source of income for their existing investments under ongoing drive of the government to check money laundering and terror financing.

    The ministry of finance last week issued draft National Savings Schemes (AML and CFT) Rules, 2019 to document the investment and identify links of investments to Money Laundering and Terror Financing.

    Under the rules the Central Directorate of National Savings (CDNS) will conduct customers due diligence (CDD) of all existing and new investors of NSS.

    The customers will require to provide source of earnings for the investment and their annual income.

    Currently CSNS has 4 million customers and the total investment has increased to around Rs4 trillion by October 2019.

    According to the draft rules: 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.