Page 25 - NIBAF-Training Matters July - December 2022

Karachi from Nov 21-25, 2022 for
fifty-one participants from SBP,
SBP BSC and commercial banks.

Programs for
Exchange Companies

Exchange Companies(ECs) have
been an important segment in
Pakistan’s financial sector and SBP
continues to develop and
implement instructions for their
effective regulation and monitoring
to ensure stability of forex market.
Given the different business model
of ECs, NIBAF has launched
various capacity building programs
for audit & compliance teams as
detailed below. Joint Director, on deputation with Compliance and Internal Audit
NAB-Lahore, discussed various officials of ECs. NIBAF Islamabad
Exchange Companies: aspects of Enhanced Due conducted three iterations of the
Diligence, customer risk profiling,
program at Lahore (September 15-
Role of Compliance and red flag indicators and compliance 16, 2022), Karachi (October 24-
Internal Audit in with FATF’s requirements. The 25,2022) and Islamabad
implementation and training was attended by 27 (December 5-6, 2022). Panel of
monitoring of regulatory participants from 12 Exchange trainers including Mr. Raza Bakir
Shah-Deputy Director-SBP, Mr.
Companies. The training was
controls highly interactive with various Gulzar Khan- Joint Director-SBP,
practical issues and compliance Mr. Muhammad Rehan-Joint
NIBAF organized a two-day face-to- gaps highlighted by participants. A Director-SBP, Mr. Kamran Khan-Sr.
face training program for ECs at comprehensive case study was DCM-SBP BSC Islamabad and Mr.
Lahore Campus from September also conducted by participants to Muhammad Ali-Deputy Director-
15-16, 2022. The objective of the calculate the residual risk of their SBP delivered the training. Mr.
program was to enhance the skill respective institutions. All the Gulzar Khan has over 15 years of
set of the Internal Audit and participants appreciated both the diversified experience with SBP
Compliance officials in areas content and expertise of the particularly in the areas of AML-
including transaction monitoring trainers with suggestion to conduct CFT-CPF, Risk Based Supervision,
and internal risk assessment. Mr. more trainings in related area. and Credit Risk Management and is
Raza Bakir Shah, Deputy Director, currently on-deputation with NAB,
SBP with almost ten years of Compliance and Audit Lahore. Being a financial crime
experience in on-site inspection of Functions of Exchange expert, he shared key insights on
ECs and hands-on experience in money laundering and effective
the formulation of Risk Based Companies controls for exchange companies.
Rating Criteria for ECs shared Mr. Raza Bakir and Mr. Muhammad
important insights on the topic with SBP has issued various Rehan were part of the core team
the participants. Mr. Gulzar Khan, instructions on strengthening the involved in the formulation of Risk-
controls to ensure smooth, Based Rating Criteria for Exchange
transparent and secure Companies and hence they shared
flow of foreign exchange. the most important risk factors for
NIBAF Islamabad ECs, calculation of internal risk and
observed the need for mitigation strategies. Mr. Ali has
training programs for over 15 years of experience as a
participants from Financial Institutions Examiner
Exchange Companies involved with Exchange
particularly in the area of Companies audited with particular
AML-CFT. For this focus on AML-CFT controls and
purpose, a completely has been involved in inspections
new training program based on collaboration between
was launched for SBP and Law enforcement