Compliance with FATF not to hurt CDNS’ business

Islamabad, January 28, 2020: Ministry of Finance clarifying a news report captioned as “National Savings and FATF” which published in the section of the press on Monday said the contents of the news report as published by the media were likely to be misconstrued by the account holders and clients of the Central National Saving Scheme (CDNS).

In an official statement, Finance Division maintained that CDNS was committed to mitigating the deficiency to improve customer service delivery and to comply with the FATF recommendation to safeguard the 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 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.

Accordingly, Expression of Interest, in consultation with SBP, has been sought from the interested bank to conduct KYC and other requirement of new as well as existing clients of CDNS.

This will include the biometric verisys and screening of potential clients in UN Proscribed person List.

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.

Finance Division therefore reiterates that the steps of the government were aimed at making the CDNS compliant with the FATF requirement and were not intended to jeopardize the interests of the account holders /customers.

Moreover, third-party arrangement will make the organization i.e CDNS more transparent and viable for the customers and will not in any case affect its financial business.