New database developed to help Pakistan out of FATF Grey List

For the past month, banks and other financial institutions in Pakistan have been using a domestic politically exposed persons (PEP) database to curb corruption and money laundering across Pakistan. The database has been created by First Paramount Modaraba to help Pakistan comply with regulations of the Financial Action Task Force (FATF).

All monetary organizations are bound by the government’s directive to keep a check on individuals through this database. These include all banks and all public as well as private financial institutions across Pakistan. Officials at financial institutes have confirmed that using the database before any financial transaction has become a routine procedure for them. The database includes people in politically powerful offices that could be involved in corruption and money laundering.

This decision to use the database was taken after Pakistan was kept on the Financial Action Task Force’s (FATF) grey list. Even though Pakistan has managed to complete 26 out of 27 action items required in the 2018 action plan. FATF has encouraged Pakistan to target its one remaining Combating Financial Terrorism (CFT) related item by taking precautionary measures by using this database.

Managed by Paramount Investment Limited, FPM is an Islamic non-banking financial institution that has developed an extensive domestic database consisting of over 110,000 PEPs. The organization has structured the database in compliance with the FATF guidelines. Frequent updates are also being made in the database.

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This database will also help to overcome the six newly added Anti-Money Laundering/ Combating the Financial Terrorism (AML / CFT) deviancies by the FATF. The AML check used by FPM is in accordance with the targets of FATF and the technology used is a global leader in providing AML screening. Sources have confirmed that this is the only Domestic Cloud Facility in Pakistan that is offering screening services of PEP.

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1 COMMENT

  1. Being an MLRO of a firm. I would say that is a very encouraging update not only for curbing Corruption and Money Laundering but also to the Compliance field as a whole in Pakistan.

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