Proper identification.

AFTER four long years, Pakistan has earned freedom from the shackles of the Financial Action Task Force (FATF). The real challenge now is to keep the current status unchanged. The major responsibility rests with banks in Pakistan when it comes to following the anti-money-laundering and counter-financing of terrorism (AML/CFT) guidelines.

To fend off money-laundering, at the time of opening a bank account, the Know-Your-Customer (KYC) form is mandatory regarding the evidence of the source of income. Despite using modern software systems, banks fail to prevent money-laundering.

The flaws that had landed Pakistan in hot soup deserve serious consideration by the banking industry. As fintech platforms flourish, banks need to be more vigilant to avoid dirty money in their institutions.

Often, banks demand the production of the original identity...