Considering money laundering and terrorist financing as part of your institution’s business risk – a risk based approach . In today’s ever shrinking world, the importance of Know Your Customer – KYC cannot be overemphasized. Institutional regulators worldwide have set high standards in respect of Risk Management, focusing particularly on Anti Money Laundering (AML) and Countering Funding to Terrorists (CFT) practices in banks.
Banks are required to follow regulations related to AML and CFT. These include:
• State Bank of Pakistan – Directives / Prudential Regulations.
• FATF 40 + 9 Recommendations.
• EU — Directives requiring extended due diligence measures Banks are subject to higher international. monitoring and controls and non compliance to these regulations attract very high penalties.
IFI Consultants with their affiliates and legal counsels based in New York and London have developed the necessary resources and expertise to assist banks in meeting the required standards. Keeping in view the present SBP and international requirements, we offer the following services to banks:
• Reviewing the customer relationships established and activities in the accounts in line with the SBP Prudential Regulations.
• Development of integrated software (with the assistance of our affiliates abroad) to enhance banks’ capacity in monitoring account relationships.
• Development of adequate employee screening procedures to ensure high standards when hiring employees (one of the requirements of the Financial Action Task Force (FATF) recommendations).