Page 26 - NIBAF-Training Matters January-March 2021

Companies Ordinance, Contract Act, Companies NIBAF-Islamabad also conducted a 2-day Capacity
Act, etc. Mr. Shahid further explained in detail Building Program on Regulatory Regime for
recent SBP regulations on AML/CFT, implementation Exchange Companies (ECs) during February 3-4,
of revised FATCA Forms, Account opening 2021. Mr. Adil Jan, Joint Director, EPD conducted
requirements, Currency Management, best practices the session and discussed the regulations for
to achieve operational efficiency w.r.t cheque Exchange Companies in detail, relevant sections of
handling & clearing process, use of Alternate Foreign Exchange Regulation Act (FERA), 1947 and
Delivery Channels, and handling of branch audit. relevant provisions of the Foreign Exchange (F.E)
Manual. The session was quite interactive with
NIBAF’s program on AML/CFT is designed with an
enriched content to offer a combination of learning various questions raised by the program
opportunity from a seasoned banking practitioner participants specially on the AML/CFT and CDD
as well as resource from the Financial Monitoring related compliance issues as well as details on
Unit who is directly involved in analyzing the pursuing cases of volition under FERA, 1947 and
reported suspicious transactions. The AML/CFT- related penalties. Mr. Adil discussed the Legal
Latest Legal and Regulatory Developments Framework and formation of ECs and the need to
program was conducted F2F on February 16-17, develop them as a convenient alternate for basic
2021 at NIBAF Islamabad under strict compliance services to public and as a support to interbank
on COVID related SOPs. To ensure comprehensive market. He further explained basic functions of
coverage of relevant content and allow for ECs/ECs-B, their category-wise operational
sufficient hands-on practice to the attending restrictions, country-wide network in terms of
Compliance Professionals, NIBAF’s Commercial Branches, Franchises, Payment Booths, Currency
Banking Expert, Mr. Shahid Iqbal along with an Exchange Booths, contribution in FX transactions,
experienced analyst from the Financial Monitoring Overview of ML/TF for ECs, Areas for Risk
Unit, Mr. Assad Farman, jointly designed and Assessments for ECs/ECs-B with respect to
delivered the session combining instructor-led customers/products & services, channels of
classroom experience with virtual discussions around transactions/ geographies. Money and Value
live scenarios, demonstration videos, and self-study Transfer Services were also discussed in detail along
training material. with FATF requirements, Action Plan / MER
Recommendation to identify and sanction and
Another F2F session on Detection and Prevention of illegal MVTS and enhance enforcement actions
Cheque Frauds was held at NIBAF Islamabad on against Hawala/Hundi under the FERA, 1947. The
February 11, 2021. Mr. Shahid Iqbal stressed the session was quite interactive and very well received
role of Training tellers back-office staff as the first by the Exchange companies officials.
line of protection to recognize fraudulent checks to
protect their institution from potential losses. He The huge transactions and sums of money moving in
further shared tips for spotting counterfeit, forged international trade offers opportunities for large-
and altered checks, explained procedures that can scale money laundering. Complexity of the money
be used to reduce paying/collecting bank's trail further make effective oversight challenging for
exposure to check fraud losses, paying/collecting financial institutions. In fact, Trade Based Money
bank’s legal responsibility for counterfeit, forged Laundering (“TBML”) is recognized by the FATF as
and altered checks and discussion on whether a one of the three main methods by which criminals
check fraud victim has the legal right to expect circulate money to disguising its origin and integrate
reimbursement for a loss. it back into the formal economy. Hence, it is
important for Banks to identify the risk areas in their
trade finance operations and ensure robustness of

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