97% of all bank accounts backed by CNICs

SBP had earlier issued instructions to banks to collect CNICs from all account holders and supply records to LEAs.

KARACHI: Banks have acquired computerised national identity cards (CNICs) copies of 97 per cent account holders in order to control money-laundering and terrorism financing in the country, according to the State Bank of Pakistan (SBP).

The SBP had earlier issued instructions to banks to collect CNICs from all account holders and supply these records to law enforcement agencies. The SBP had also said that banks should take action against those who fail to furnish identity documents.

The SBP took these steps during 2009 after a detailed assessment report of the Asia Pacific Group (APG) on money laundering in Pakistan which assessed the overall efficacy of the legal, law enforcement and financial regulatory regime to counter international money-laundering.

Mustafa Bilwani, an analyst at JS Global Capital Limited, said that the performance of banks in acquiring CNICs is appreciative and added that the percentage cannot be 100 per cent because a number of banks have government accounts. “If this percentage goes to 99 per cent it will be a good step in controlling illegal transactions through banks,” he added.

It is now difficult to open bank accounts without giving proper documents and there have even been instances where banks threatened account holders that the bank will seal their accounts if they failed to submit their documents despite repeated requests, he informed. SBP regulations about money-laundering are strict and all suspicious transactions are monitored regularly, he added.

The Anti Money Laundering Ordinance was promulgated in 2007 and was enacted as an act of parliament in 2010.

Published in The Express Tribune, November 21^st, 2010.