Rules (general), as published 30 June 2020
This is the Rules (general) as it stood on 30 June 2020. It runs to 4 pages and contains 7 sections, with 0 amendment footnotes.
What this document is
Published by the Federal Board of Revenue as part of the Rules (general) collection. A consolidation of this kind folds every amendment made up to its cover date into the text, so it shows the law as it stood on 30 June 2020 rather than as originally enacted.
The date above was taken from the file name rather than a consolidation statement on the cover, so treat it as approximate.
The shape of this version
The operative text holds roughly 894 words across 7 sections.
What changed since the previous version
Against the version published 30 June 2020, this one has 1 new section and 1 that no longer appear.
New in this version
- section 7, Counter-measures for high risk countries
No longer present
These appeared in the previous version and not in this one. That usually means omission by a later law, though it can also mean a heading was formatted in a way the extraction did not recognise.
- section 8, Appeal Process
The source file
| File name | Counter-Measures for High Risk Jurisdiction Rules, 2020.pdf |
| Pages | 4 |
| Size | 0.27 MB |
| Text extraction | markitdown |
| Extraction confidence | high |
| Position in this collection | 2 of 8 |
SHA-256 of the source PDF:
99767c4818b7d5004c010cf3f8cf0d161c79581ef9e076f08577dafe59a6b7d9Checking that value against the file you download confirms it is the same document these figures came from.
A note on these figures
Counts here are produced by software reading the PDF, not compiled by hand. The same method is applied to every document, which makes comparisons between versions meaningful, but a section with unusual formatting can be missed. Treat them as close measurements and the official document as the authority.
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The full text of this version
All 7 sections as they appear in this document, reproduced from the source PDF. Amendment footnotes follow at the end.
1. Short title and commencement
(1) These Rules may be called the
Counter-measures for High Risk Jurisdictions Rules, 2020,
(2) These rules shall come into force at once.
2. Definitions
(1) In these Rules, unless there is anything repugnant in the subject or context,-
(i) (ii)
“Act” means the Anti-Money Laundering Act, 2010;
“FATF” means Financial Action Task Force; and
(iii) “high risk countries” as provided under Rule 3
(2) All terms and expressions used but not defined in these rules, shall
have the meanings as are assigned to them in the Anti-Money Laundering
Act, 2010.
3. Composition and review of the high-risk countries list
(1) The National
Executive Committee (NEC) shall notify a list of high-risk countries keeping
in view the following:-
(i) countries which are subject to a call for application
of countermeasures by the FATF.
(ii) countries identified by the National Executive
Committee as having strategic deficiencies in their
AML/CFT regimes and/or posing a risk to the
AML/CFT regime of Pakistan. The identification of
such high-risk countries shall be made by the
National Executive Committee
based
on
recommendations by the competent authorities of
Pakistan or based on internationally acknowledged
instruments or other reliable sources such as the
FATF or FATF-Style regional bodies.
(2) For the purposes of clause (ii) of sub-rule (1) of Rule 3 high-risk
countries identified shall be subject to periodic reviews by the National
Executive Committee. The periodic reviews shall also be based on the
recommendation of competent authorities of Pakistan or based on
internationally acknowledged instrument or other reliable sources such as
the FATF or FATF-Style regional bodies.
4. Publication and updation of the high-risk countries list
(1) The
Financial Monitoring Unit shall publish the list of high-risk countries on its
official website. The Financial Monitoring Unit shall also promptly publish
any subsequent updates to the list on its official website.
The list of high-risk countries shall be promptly updated by the
(2) Financial Monitoring Unit as and when there are:
i)
any amendments to the FATF’s list of countries
subject to a call for countermeasures; or
ii)
any revisions to the list identified by the National
Executive Committee as per clause (ii) of sub-rule
(1) of rule 3.
5. Country risk advisories to reporting entities
The National Executive
Committee, through the Financial Monitoring Unit and the AML/CFT
regulatory authorities, shall advise the reporting entities of concerns about
weaknesses in the AML/CFT systems of other countries.
6. Application of Enhanced Due Diligence
(1) Every reporting entity shall,
proportionate to the money laundering and/or the terrorist financing risks,
apply enhanced due diligence measures to business relationships and
transactions with natural and legal persons (including financial institutions)
from any country on the high risk countries list.
(2) These Enhanced Due Diligence measures may include inter-alia:
i. obtaining additional information on the customer (e.g.
occupation, volume of assets, information available through
public databases, internet, etc.), and updating more regularly
the identification data of customer and beneficial owner.
ii. obtaining additional information on the intended nature of
the business relationship.
iii. obtaining information on the source of funds or source of
wealth of the customer.
iv. obtaining information on the reasons for intended or
performed transactions.
v. obtaining the approval of senior management to commence
or continue the business relationship.
vi. conducting
enhanced monitoring
of
the business
relationship, by increasing the number and timing of controls
applied, and selecting patterns of transactions that need
further examination.
vii. requiring the first payment to be carried out through an
account in the customer’s name with a bank subject to
similar due diligence standards.
7. Counter-measures for high risk countries
(1) Pursuant to clause (c) of
sub-section (2) of section 5 of the Act, the Federal Government on
recommendations of the National Executive Committee shall, proportionate
to the risks, call for specific countermeasures to be applied by the reporting
entities against high-risk countries, including the mandatory application of
enhanced due diligence measures.
(2) Other countermeasures may include inter-alia:-
i.
limiting business relationships or financial transactions
with the high-risk countries or with persons located in the
country concerned;
ii. reviewing and amending or, if necessary, terminating the
agreement or arrangement governing the correspondent
banking or business relationships with financial institutions
or other counterpart institutions in the country concerned;
iii. conducting enhanced external audit, by increasing the
intensity and frequency, for branches and subsidiaries of
the reporting entity located in the country concerned;
iv. prohibiting reporting entities from relying on third parties
located in the country concerned to conduct elements of the
due diligence process; and
v. conducting any other measures as may be specified by the
Federal Government.
-Sd- Deputy Secretary (AML) Ministry of Finance