CDNS to identify, money laundering risks in new products, businesses.


ISLAMABAD -- The Central Directorate of National Savings (CDNS) would undertake measures to identify and assess the money laundering /terrorist financing (ML/TF) risks that may arise in relation to the development of new products and new business practices.

The CDNS would also undertake risk assessments prior to the launch or use of such products, practices and technologies and take appropriate measures to manage and mitigate these risks. The Finance Division has stated it in the draft National Savings Schemes (AML and CFT) Rules, 2019. According to the SRO, draft National Savings Schemes (AML and CFT) Rules, 2019, which the federal government proposes to make in exercise of the powers conferred under section 28 of the Public Debt Act, 1944 (XVIII of 1944), are hereby published for information of all persons likely to be affected thereby and, as required by sub-section (1) of section 28 of the said Act. A notice is hereby given that objections or suggestions thereon, if any, may for consideration of the federal government be sent within seven days of publication of this notification.

The Finance Division has also made it mandatory for the officers of CDNS, National Savings Centers and Pakistan Post to carry out business and risk profiling of their customers/accountholders, identify beneficial owners and comply with the provisions of the AML Act for reporting of STRs and CTRs in the context of money laundering and financing of terrorism.

According to the rules, the office of issue shall monitor its relationships on a continuous basis and ensure that no relationship with the proscribed or designated, individuals and entities exists and where, any such relationship is found, the same should be immediately reported to FMU and other actions shall be taken as per the applicable law. The rules further stated that the...

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