KARACHI – The State Bank of Pakistan has amended the Prudential Regulation Number 17 for microfinance banks (MFB) with immediate effect to introduce minimum requirements to maintain records of transactions and identification data in a systematic manner.
An SBP Circular, MFD Circular Number 1 issued on Saturday, said microfinance banks shall keep records on identification data obtained through the customer due diligence (CDD) process, account files and business correspondence for at least five years following the termination of the business relationship.
Moreover, it said MFBs shall also maintain all necessary records on transactions, both domestic and international, for at least five years following completion of the transaction. “Such record must be sufficient for reconstruction of individual transactions so as to provide, if necessary, evidence for investigation or prosecution of criminal activity,” the circular said.
Therefore, the Circular said, the PR 17 of MFBs has been strengthened to include clear instructions on the minimum period for retention of ‘identification record’ and ‘transaction record’ in line with national and international practices, as a step towards strengthening Anti-Money Laundering/Combating Financing Terrorism regulations for MFBs.
SBP amends MFBs laws to probe criminal transactions
