Regulatory Alerts2021-06-22 | Circular No.02Red Flags Indicators for DNFBPs regarding Targeted Financial Sanctions related to TF and PF
The Financial Monitoring Unit mandates that DNFBPs implement Targeted Financial Sanctions and report suspicious transactions under the Anti-Money Laundering Act of 2010. This circular provides specific red flag indicators to assist reporting entities in identifying potential breaches related to terrorism and proliferation financing. These indicators serve as a formal aid to ensure regulatory compliance and the accurate detection of prohibited financial activities.
FINANCIAL MONITORING UNIT (FMU) GOVERNMENT OF PAKISTAN 2ND FLOOR, SBP MAIN BUILDING, I.I. CHUNDRIGAR ROAD, KARACHI 4400 FMU-Circular No. 02 of 2021 June 22, 2021 Designated Non-Financial Businesses and Professions (DNFBPs) REs Dear Sirs/ Madams, Red Flags Indicators for DNFBPs Sectors on Targeted Financial Sanctions (TFS) related to Terrorism Financing (TF) And Proliferation Financing (PF) In terms of Section 7 (H) of Anti-Money Laundering Act, 2010, the reporting entities including DNFBPs are required to effectively implement and comply with TFS obligations. Further, in terms of Section 7 (1) of Anti-Money Laundering Act, 2010, the reporting entities including DNFBPs are also 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. 2. In order to identify a suspicion that could be indicative of potential activity in breach of TFS obligations regarding Terrorism Financing (TF) / Proliferation Financing (PF) related activities, FMU has prepared the red flags indicators that are specially intended as an aid for the DNFBPs sectors reporting entities. These red flags are attached as “Red Flags Indicators for DNFBPs Sectors on Targeted Financial Sanctions (TFS) related to Terrorism Financing (TF) And Proliferation Financing (PF)” Encl: “Red Flags Indicators for DNFBPs Sectors on Targeted Financial Sanctions (TFS) related to Terrorism Financing (TF) And Proliferation Financing (PF)” Yours truly, Sd/- (Adnan Imran) Director Copy to: The Chairman, Securities and Exchange Commission of Pakistan The Director General, Directorate General DNFBPs, FBR The President, Institute of Chartered Accountants of Pakistan (ICAP) The President, Institute of Cost and Management Accountants of Pakistan (ICMAP)