Rs 2.5m transaction threshold set to check money laundering

[Naveed Yaseen]

By Sajid Chaudhry
ISLAMABAD: The federal government has made it mandatory for financial institutions to report to the Financial Monitoring Unit (FMU) if a transaction exceeds Rs 2.5 million, in a bid to check money-laundering activities.

The Securities and Exchange Commission of Pakistan (SECP) issued a circular on Saturday setting the threshold – which would require the filing of a ‘Currency Transaction Report (CTR)’ if exceeded – keeping in view instructions by the Finance Ministry.

According to the SECP circular, the National Executive Committee (NEC) – in exercise of powers conferred under the Anti-Money Laundering Ordinance 2007 – has said that any transaction exceeding Rs 2.5 million must be reported as a CTR to the FMU. According to the Anti-Money Laundering Regulation 2008 issued by the FMU, the only agency in Pakistan designated for the receipt of ‘Suspicious Transaction Reports’ and CTRs is the monitoring unit.

Financial institutions have been directed to file CTRs not later than seven working days after cash transactions in excess of the prescribed limit.

Following the receipt of CTRs, the FMU would analyse the transactions and refer any suspicious activity to an appropriate investigation or prosecuting agency.

http://www.dailytimes.com.pk/default.asp...2009_pg1_9