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PBA educates banks on TBML

By Our Correspondent
December 01, 2023

KARACHI: Pakistan Banks’ Association (PBA) held a training session on trade-based money laundering (TBML) for its member banks, aiming to strengthen the financial sector against local and global trade risks.

The training session was based on a module of the International Finance Corporation (IFC), an affiliate of the World Bank Group, and covered topics such as TBML typologies, red flags, risk indicators, and best practices.

The logo of the  Pakistan Banks’ Association (PBA). — Facebook/Pakistan Banks Association
The logo of the  Pakistan Banks’ Association (PBA). — Facebook/Pakistan Banks Association

The session also aligned with the State Bank of Pakistan’s (SBP) requirement for financial institutions to implement robust measures in accordance with the regulatory framework and international standards, including regular training for staff to monitor, identify, and report any suspicion of TBML to the Financial Monitoring Unit (FMU).

“Pakistan Banks’ Association remains committed to help build capacity of the banking industry. Through such training programs, we aim to empower the banks and DFIs in Pakistan to uphold the highest banking standards, while also reinforcing their integrity in global trade,” said Tawfiq A. Hussain, CEO and Secretary General of PBA, in a statement.

TBML is the process of disguising the proceeds of crime and moving value through the use of trade transactions in an attempt to legitimise their illicit origins. It is one of the main methods used by criminals to launder money, and poses a serious threat to the stability and transparency of the financial system and the global trade network.