Karachi: The State Bank of Pakistan has issued new guidelines for banks dealing in foreign exchange to restrict misuse of banking channels for trade-based money laundering and terror-financing – a news source reported.
The document issued by the central bank noted that the main method used by such people involves transfers through legitimate transactions by under-invoicing, over-invoicing, short/over shipment and obfuscation of type of goods/services among other things.
The main purpose of the new framework is to improve the AML/CFT regime on trade. It is also meant to conserve the foreign exchange and applies to all banks that deal with it.
Additionally, the document mentions that the provisions of this framework are not a replacement of the old instructions issued on money laundering; rather they are meant to supplement them. The compliance of these directives will not absolve the banks from the legal and regulatory obligations that apply under the prevailing anti-money laundering or terror-financing laws or regulations.
