State Bank warns exchange companies over Anti-Money Laundering

KARACHI: The State Bank has directed exchange companies to carefully follow the requirements of Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) regime by submitting Suspicious Transaction Reports (STRs) and Currency Transaction Reports (CTRs) manually or electronically to the Financial Monitoring Unit (FMU).

The State Bank, in a circular issued on Friday warned that the failure to follow these directions could attract `criminal sanctions`. Sanctions will also be imposed on exchange companies providing false information regarding the STRs and the CTRs.

Furthermore, a simultaneous regulatory action will be initiated against an exchange company (EC) and officers found violating the above legal requirements as per the rules which may result in suspension or cancellation of the licenses.

It reminded the exchange companies that being “Financial Institutions” under the Anti-Money Laundering Act 2010, they were required to submit STRs and CTRs to the Financial Monitoring Unit (FMU).

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