State Bank of Pakistan has released the orders to all microfinance banks to ensure biometric verification of customers to eliminate scams like money laundering and financing terrorism.
It has made mandatory that microfinance banks must strictly monitor relevant instructions including biometric identification and verification of customers as well as their beneficial owners.
Microfinance banks must have an appropriately supported and strengthened monitoring system to make certain that the transactions being carried out in the accounts are in accordance with the MFB’s acquaintance of their customer, business, and risks profile.
MFBs are also suggested to refer to the SECP Circular No. 16 of 2018 dated August 29, 2018 (https://www.secp.gov.pk/laws/circulars/) according to which the Commission has directed all companies to increase their efforts to retrieve and preserve updated data relating to their beneficial owners.
Furthermore, an agreement should be acquired from the customer declares that the particulars given to the MFB are accurate and has verified by the staff. This undertaking should be recognized by the Branch Manager and should be preserved in the bank’s centralized record.
