The Government plans to take initiatives for screening Rs 4.038 trillion investments in National Savings schemes from more than seven million investors. It aims to eliminate illegal money from becoming a part of the financial system.
It will also protect valued investors from becoming a victim of money laundering and terror financing.
National Savings schemes provide risk-free and competitive opportunities to all segments of society, especially senior citizens, pensioners, widows, physically challenged persons, and family members of martyrs.
Financial Action Task Force (FATF) Recommendations:
Financial Action Task Force (FATF) recently recommended changes to the Government as the Asia Pacific Group published its Mutual Evaluation Report. The report indicated many shortcomings of the Central Directorate of National Savings (CDNS).
CDNS faces many challenges especially in manual operations and continued lack of information technology.
Deadline Of February 2020:
The FATF has issued a deadline of February 2020 to the Government and demand Islamabad trace and identify the owners of these investments in the National Savings schemes. Till the recommendations given by FATF are implied, Pakistan will remain on the grey list.
Training For Employees Of CDNS:
In compliance with the recommendations given by FATF, the finance division, through the cooperation of the National Savings Schemes (AML-CFT) Rules, has decided to open an AML-CFT compliant bank, through competitive bidding, and train employees of CDNS respectively.
An expression of interest has also been sought from all interested banks to conduct KYC through biometric verification and screening of potential clients in the UN Proscribed Person List.
It will prove to be a cost-effective route for the Government of Pakistan to fill in the fiscal deficit but will reduce foreign dependency in the long run.