National saving schemes no longer a safe haven for black money

KARACHI: Central Directorate of National Savings (CDNS) is engaging a commercial bank to act as a watchdog monitoring transactions, maintaining CDNS customers’ record and generating suspicious transaction report (STR) and customer transaction report (CTR) in order to comply with anti-money laundering laws and FATF recommendations.

Due to lack of integration and absence of whistle blowing system the level of vulnerability associated with CDNS centers is very high.

“CDNS has sought revised proposals from banks willing to conform their bids to the revised technical requirements for hiring of services for AML-CFT Compliance in CDNS in line with National Savings Schemes (AML – CFT) Rules, 2019, AML Act, 2010 and FATF recommendations for CDNS existing new customers,” a document issued on March 05 noted.

According to the scope of work, the bank will carry out transaction monitoring of CDNS customers and generate STRs and CTRs as per requirements National Savings Schemes (AML – CFT) Rules, 2019 and AMLA Act, 2010.

The bank will perform screening, customer due diligence of all existing customers of CDNS; risk profiling of the existing customers in 12 months; screening of approximately 4 million existing customers in six months.

The bank, under a third party arrangement, will undertake end-to-end onboarding of all existing and new customers of CDNS and open a linked account for CDNS customers on the basis of information provided by the investor.

National Savings plays a pivotal role to inculcate the culture of savings, facilitate financial inclusion and extending social security net to the deserving sections of the society, and all these screenings are meant to stop any ill-gotten money to become part of financial system and to safeguard the valued investor from the menace of money laundering and terrorist financing.

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