Clarifying a recently published media report titled ‘National Savings and FATF’, the Ministry of Finance has claimed that the contents of the report “are likely to be misconstrued by the account holders and clients of the Central National Saving Scheme (CDNS)”.
In an official statement issued on Monday, the Finance Division has maintained that the CDNS is committed to improving customer service delivery and complying with the FATF recommendation to safeguard investors’ interests.
“Banks under the supervision of SBP have already put in place all the required systems and KYCs (Know Your Customers) processes to comply with the FATF recommendations. In order to implement this requirement, the Finance Division, through the promulgation of National Savings Schemes (AML-CFT) Rules, 2019, has decided to engage an AML-CFT compliant bank, through competitive bidding, to put in place the requirements as well as the necessary training of employees of National Savings,” the statement read.
“Accordingly, Expression of Interest, in consultation with SBP, has been sought from the interested bank to conduct KYC and other requirements of new as well as existing clients of CDNS. This will include biometric verification and screening of potential clients in the UN-Proscribed Person List. All these screenings are meant to stop any ill-gotten money to become part of the financial system and to safeguard the valued investor from the menace of money laundering and terror financing.
“The Finance Division, therefore, reiterates that the government’s steps are aimed at making the CDNS compliant with the FATF requirement and are not intended to jeopardize the interests of the account holders/customers.”