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 office of issue shall ensure implementation of targeted financial sanctions to comply with United Nations Security Council resolutions relating to the prevention, suppression and disruption of proliferation of weapons of mass destruction and it’s financing. The Office of issue shall ensure compliance with the Guidelines for Implementation of UNSC Sanctions issued by the Ministry of Foreign Affairs under the UNSC (Freezing and Seizure) Order, 2019 and the Guidelines on Actions to be taken by Competent Authorities for Implementation of United Nations Security Council Resolution No. 1373 issued by the National Counter Terrorism Authority (NACTA).

In relation to non-governmental organizations (NGOs), non-profit organizations (NPOs) and charities, the office of issue or third party shall- (a) conduct enhanced due diligence of the customer; (b) ensure that the business relationship may not be used for unlawful objects; (c) issue the instruments in the name of the relevant NGO, NPO or charity, as given in its constituent documents; (d) conduct comprehensive CDD and KYC of the authorized agents or representatives as well as members of the governing body of the trust, NGO, NPO or charity; and (e) ensure that the authorized agents or representatives as well as members of the governing body of any trust, NGO, NPO or charity having existing relationship are not affiliated with any proscribed or designated individual or entity, whether under the same name or a different name and in case of any positive match, the office of issue shall consider filing STR and take other actions as per law.