Regulatory Alerts2020-11-05 | Circular No.11Red Flag Indicators for Central Directorate of National Savings (CDNS)
Reporting entities including CDNS must promptly submit Suspicious Transactions Reports to the Financial Monitoring Unit as mandated by the Anti-Money Laundering Act of 2010. The FMU has developed specific red flag indicators in coordination with the National Savings Supervisory Board to assist CDNS in identifying potential money laundering and terrorism financing. While individual indicators may not confirm illicit activity, institutions should evaluate combinations of these flags alongside broader client profile and financial behavior analysis.
FINANCIAL MONITORING UNIT (FMU) GOVERNMENT OF PAKISTAN 2ND FLOOR, SBP MAIN BUILDING, I.I. CHUNDRIGAR ROAD, KARACHI 4400 FMU-Circular No. 11 of 2020 November 05, 2020 Central Directorate of National Savings (CDNS) Dear Sirs/Madams, Red Flag Indicators for Central Directorate of National Savings (CDNS) In terms of Section 7 (1) of Anti-Money Laundering Act, 2010, the reporting entities including CDNS are required to promptly report Suspicious Transactions Reports (STRs) to Financial Monitoring Unit for potential Money Laundering (ML) / Terrorism Financing (TF) related activities. 2. In order to identify a suspicion that could be indicative of Money Laundering (ML) or Terrorism Financing (TF), FMU has prepared the red flag indicators in consultation with National Savings (AML and CFT) Supervisory Board that are specially intended as an aid for the CDNS and are attached as “Red Flag Indicators for Central Directorate of National Savings (CDNS)”. 3. 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 ML / TF activity. However, a combination of these red flags, in addition to analysis of overall financial activity and client profile may indicate a potential ML / TF activity. Encl: “Red Flag Indicators for Central Directorate of National Savings (CDNS)”. Yours truly, Sd/- (Adnan Imran) Director Copy to: The Director General, Central Directorate of National Savings (CDNS) The Governor, State Bank of Pakistan The Chairman, Securities and Exchange Commission of Pakistan