Regulatory Alerts2020-10-08 | Circular No.10Red Flags Indicators for Proliferation Financing
Reporting entities must submit Suspicious Transaction Reports to the Financial Monitoring Unit for activities related to money laundering, terrorism financing, or proliferation financing under the Anti-Money Laundering Act of 2010. The FMU has issued specific red flag indicators to assist these entities in identifying potential proliferation financing risks. While individual red flags are not conclusive evidence of illicit activity, a combination of these indicators, when weighed against a client's overall profile and financial behavior, serves as a basis for determining the necessity of an STR filing.
FINANCIAL MONITORING UNIT (FMU) GOVERNMENT OF PAKISTAN 2ND FLOOR, SBP MAIN BUILDING, I.I. CHUNDRIGAR ROAD, KARACHI 4400
FMU-Circular No.10 of 2020 October 08, 2020
All Reporting Entities
Dear Sirs/Madams,
Red Flags Indicators for Proliferation Financing
In terms of Section 7 (1) of Anti-Money Laundering Act, 2010, the reporting entities are required to promptly report Suspicious Transactions Reports (STRs) to Financial Monitoring Unit for potential Money Laundering (ML) / Terrorism Financing (TF) / Proliferation Financing (PF) related activities.
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In order to identify a suspicion that could be indicative of Proliferation Financing FMU has prepared the red flags indicators that are specially intended as an aid for the reporting entities, which are attached as “Red Flags Indicators For Proliferation Financing”.
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These red flags may appear suspicious on their own; however, it may be considered that a single red flag would not be a clear indicator of potential Proliferation Financing activity. However, a combination of these red flags, in addition to analysis of overall financial activity and client profile may indicate a potential Proliferation Financing activity.
Encl: Red Flags Indicators For Proliferation Financing
Yours truly, Sd/- (Sumera Baloch) Additional Director
Copy to: The Governor, State Bank of Pakistan The Chairman, Securities and Exchange Commission of Pakistan The Chairman, Federal Board of Revenue The President, ICAP The President, ICMAP The Director General, National Savings