Micro-finance banks instructed to install biometric devices by year end says: SBP

MFBs have been directed to ensure installation of biometric verification devices by the end of December this year.

Karachi: The State Bank of Pakistan (SBP) on Monday instructed micro-finance banks (MFBs) to make the use of biometric technology mandatory for the authentication of its customers and ensure conclusion of this process by the 31st of December 2017.. MFB’s have been told to ensure compliance with these directives as stated by the central bank.

The central bank issued these instructions in light of the measures it introduced on the 9th of June to regulate terror financing and money laundering. Further amendments were made on the 14th of June which had stated “Banks/DFIs will make comprehensive assessment of controls on asset products and related customers to ensure effective implementation of due diligence requirements as per their own assessment of materiality and risk without compromising on identity and verification requirements. This shall include monitoring of the customers and related risks on ongoing basis as per standard norms and best practices to mitigate the risks related to such products/customers.”

The amendments incorporated on the 14th of June had furthered suggested steps should be taken by banks/DFIs to develop knowledge and skills of their staff and utilize technology solutions required for effective monitoring and reporting of suspicious transactions. Transaction monitoring systems (TMS) are supposed to be enabled by June 30th 2018 for MFB’s, concluded the SBP.

- Advertisement -
- Advertisement -

Must Read

PIBs fail to attract any foreign inflows during July

The first month of the 2021-22 financial year passed without any foreign inflow in the Pakistan Investment Bonds (PIBs) which attracted $256 million during...