Karachi October 26 2023: To further strengthen the controls against Money Laundering (ML)/ Terrorist Financing (TF) risks, banks and MFBs offering Branchless Banking services (Authorized Financial Institutions) are advised to perform Biometric Verification (BV) of account/ wallet holders for all types of ‘cash-in’ and ‘cash-out’ transactions at BB agents’ locations effective from January 31, 2024.
This is in addition to the Biometric Verification of transactions and customer types already specified in the above referred Circular.
Branchless Banking prioritize deployment of new BV devices, needed for the implementation of above instructions, at agents’ locations in high TF risk areas followed by deployment in other areas across the country and take all necessary measures and controls including upgradation of the related hardware and software to comply with the above instructions.
State Bank order to strengthen their Automated Transaction Monitoring Systems (ATMS) to ensure that all BB transactions, including those conducted at agents’ locations, are captured and the system has capability to flag suspicious/ unusual/ out-of-pattern transactions and accounts with unusually high number of transactions, for further assessment and reporting of Suspicious Transaction Reports (STRs) under AML Act 2010; and reconstruct individual Branchless Banking transactions so as to facilitate gathering of necessary evidence needed in any criminal investigation under the relevant laws.
All Branchless Banking ensure adequate and meaningful coverage of BB operations in the Internal Risk Assessment Reports (IRARs) as required under the SBP’s AML/ CFT/ CPF Regulations.
