Compliance With FATF Requirements Will Not Hurt National Savings Business: MoF

The Ministry of Finance has clarified a news report captioned as “National Savings and FATF”, published in a section of the press, saying that the contents of the news report as published by media are likely to be misconstrued by the accountholders and clients of the Central National Saving Scheme.

In an official statement, Finance Division has maintained that CDNS is committed to mitigating the deficiency to improve customer service delivery and to comply with the FATF recommendation to safeguard the investors’ interests.

Banks under the supervision of the SBP have already put all the required systems in place and KYC (Know Your Customers) processes to comply with the FATF recommendations.

In order to implement this requirement, the Finance Division, through the promulgation of National Savings Schemes (AML-CFT) Rules, 2019, has decided to engage an AML-CFT compliant bank, through competitive bidding, to put the requirements in place as well as the necessary training of employees of National Savings.

Accordingly, Expression of Interest, in consultation with SBP, has been sought from the interested bank to conduct KYC and other requirements of new as well as existing clients of CDNS. This will include the biometric Verisys and screening of potential clients in the UN Proscribed Person List.

All these screenings are meant to stop any ill-gotten money to become part of the financial system and to safeguard the valued investor from the menace of Money Laundering and Terrorist Financing. Finance Division, therefore, reiterates that the steps of the Government are aimed at making the CDNS compliant with the FATF requirement and are not intended to jeopardize the interests of the account holders/ customers.

Moreover, the third-party arrangement will make the organization, ie, CDNS more transparent and viable for the customers and will not, in any case, affect its financial business