‘Beware of terrorist financing’

State Bank asks exchange companies to comply with regulations.

KARACHI: The State Bank of Pakistan (SBP) has stressed the need for exchange companies to understand the anti money-laundering (AML) and terrorist financing risks associated with their business transactions and asked them to ensure compliance with regulations of AML/CFT (combating financing of terrorism).

Inaugurating an awareness programme for directors and chief executive officers of exchange companies at the SBP Banking Services Corporation (BSC) in Lahore on Monday, SBP Executive Director Kazi Abdul Muktadir urged the exchange companies to follow the best practices of corporate governance.

He also spoke about the background under which exchange companies were established and opportunities for them to graduate towards large-sized companies.

On the occasion, the Director DFIs & Exchange Companies Inspection Department of SBP, Shaukat Zaman, gave a presentation on the best practices of corporate governance.

Senior officers of the Offsite Supervision and Enforcement Department of SBP and Financial Monitoring Unit (FMU) briefed the participants about compliance with regulations and consequences of inadequate compliance.

Welcoming the SBP’s efforts to create awareness, Exchange Companies Association of Pakistan President Haji Haroon assured the central bank that exchange companies were ready to work more closely with the regulator and would ensure compliance with prescribed regulations.

Published in The Express Tribune, July 3^rd, 2012.