KARACHI: The State Bank of Pakistan (SBP) has prepared a legal framework to eliminate misusage of foreign exchange which primarily encourages money launderers in the name of running businesses, according to media.
The central bank’s spokesperson said that the framework for trade legislation has been prepared which would bring an end to misusage and wastage of foreign exchange. The spokesperson classified that the transfer of US dollars to foreign countries by using the name of a business as ‘money laundering’.
The legal framework will allow the concerned authorities to impose cases of money laundering and terrorism against the responsible persons. The central bank urged all banks to give awareness to its consumers regarding the new regulations.
The nationals will have to submit complete details of their business assets and fabricated information will be considered as a crime. It has been declared compulsory to register actual worth of the business products in order to curb the illegal transfer of money through under and over-invoicing, the spokesperson added.
Earlier on October 8, the central bank had imposed heavy fines on commercial banks over the violation of regulations during the period of July to September this year.
The spokesperson said in a statement that fines are imposed on 17 commercial banks over different violations of laws including anti-money laundering, information collection of consumers and foreign exchange rules.
According to the spokesperson, the central bank imposed fines on commercial banks up to Rs1.12 billion which is the highest ever figure in history. In July, fines are imposed on four commercial banks up to Rs184.6 million and Rs805 million on 10 commercial banks in August. Moreover, three commercial banks faced the imposition of fines Rs133.3 million in September this year.
