A new domestic politically exposed persons (PEP) database has been developed which the banks and other financial institutions in Pakistan have been using for the past month to prevent corruption and money laundering across the country.
The said PEP database has been developed by First Paramount Modaraba (FPM) to help Pakistan comply with regulations of the Financial Action Task Force (FATF).
The government has directed all monetary organizations in the country to perform a mandatory check on individuals through this database. These organizations include all banks and all public as well as private financial institutions across Pakistan.
Some media outlets have reported that the banks have confirmed the database is being used before any financial transaction is performed. The database includes people in politically powerful offices that could be involved in corruption and money laundering.
The database was developed and the institutions were directed to use it 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.
FPM is managed by Paramount Investment Limited; and it is an Islamic non-banking financial institution that has developed an extensive domestic database consisting of over 110,000 PEPs. The database has been developed by following the FATF guidelines, and frequent updates are also being made in it after regular intervals.
It is further said to help 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.
From : pk.mashable.com