SBP lowers CTR limit to Rs2m
RIZWAN BHATTI
KARACHI: In order to further tighten the monitoring of Anti-Money Laundering transactions, the State Bank of Pakistan (SBP) has announced a reduction in Currency Transaction Report limit by Rs 0.5 million to Rs 2 million with immediate effect.
Exchange Companies (ECs), being "Financial Institutions" under the Anti-Money Laundering Act 2010, are required to submit Suspicious Transaction Reports (STRs) and Currency Transaction Reports (CTRs), as per Section 7 of the AML Act, 2010, to the Financial Monitoring Unit (FMU) of SBP.
Sources said that CTRs limit has been revised/lowered after a gap of some five years as previously, the federal government set CTRs limit as on October 15, 2009. Now, under the regulatory and legal requirements of Anti-Money Laundering (AML)/Countering Financing of Terrorism (CFT), ECs would be required to report all currency transactions of Rs 2 million or above to the FMU. As per previous directives, ECs were required to compulsory report any currency transaction Rs 2.5 million or above.
Sources said that SBP has issued new instructions following the directives of the federal government. The Ministry of Finance lowered the CTR limit through Notification No. F.1-5/AML-I/2014 dated January 21, 2015. According to ministry's notification, in modification of Finance Division's SRO 37(KE)/2010, dated 15 Oct, 2009, the minimum amount for reporting of CTR to Financial Monitoring Unit under section 7 of the AML will be two million rupees, with immediate effect.
The SBP, through circular EPD Circular Letter No. 02 of 2015 issued on Jan 28, 2015, has asked Exchange Companies to bring the contents of the new instructions to the knowledge of all its constituents for strict compliance.
Sources said that ECs are required to strictly comply with new CTR limit as Section 33 of the AML Act 2010, inter alia specifically provides for criminal sanctions on failure to file CTR and for providing false information.
Furthermore, in case any Exchange Company is found to be in violation of above legal requirements, a simultaneous regulatory action will be initiated against the concerned company and officials involved as per rules, which may result, among others, in suspension/cancellation of licenses of the concerned company.
