Pakistan issues red flags to check money laundering, terror financing

Steps aimed at coming out of Fatf grey list

By: News Desk      Published: 01:05 PM, 16 Jan, 2021
Pakistan issues red flags to check money laundering, terror financing

The Government of Pakistan has issued new red flags to check terror financing and money laundering as part of a raft of new steps aiming at coming out of the FATF grey list, reported 24NewsHD TV channel on Saturday, quoting sources.

In order to comply with the conditions of the Financial Action Task Force (FATF), there were already 15 red flags to check suspicious investments in national savings centres.

According to the sources, the federal government has also decided to issue a red alert regarding investment by politically exposed persons. There would be a red flag issued on the investment by politicians, their families and close relatives.

The red flag would have to be issued regarding investment by politicians under investigation in connection with different cases.

The sources said a directive has also been issued to keep an eye on the beneficial owners of the investors. Another directive is for issuing a red flag on investment through Benami or a third party.

It has also been decided to stop investment by people blacklisted under UN resolutions 1267 and 1373.

A red flag will also be issued on the investment by people included in the Fourth Schedule of counter-terrorism.

The sources said people included in FIA’s Red Book will not be allowed to invest.

These measures came a few weeks after the government had tightened the monitoring of investors of National Savings in order to comply with conditions of FATF and prevent transactions related to money laundering and terror financing.

The Central Directorate of National Savings (CDNS) had prepared a comprehensive plan to examine the customers and issued instructions to all its regional offices in the country.

The plan had been prepared by the National Savings AML & CFT Supervisory Board in consultation with the Financial Monitoring Unit (FMU).

Under the plan, offices of the national savings have been advised to follow the guidelines in examining and monitoring the customers of saving certificates and prize bonds.

All those customers will be examined whose overall investment quantum, account balance or transactional activity is not in line with their businesses, known means or the stated purpose of products.

The authorities have also issued red flags for transactional patterns related to all products, including certificates, accounts and prize bonds.