Tue August 22, 2017
Advertisement
Can't connect right now! retry

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

Business

June 20, 2017

Share

Advertisement

Microfinance banks must improve automation

Microfinance banks must improve automation

KARACHI: The State Bank of Pakistan (SBP) on Monday asked microfinance banks to improve automation of their compliance processes in a bid to minimise money laundering/terrorist financing and other related risks, a circular said.  

The central bank said that microfinance lenders must make use of biometric
technology at the branch level for instant verification of particulars of prospective customers. It directed banks to complete installation of bio-metric machines at branches by December 31, 2017.

Banks are also required to implement appropriate transaction monitoring systems (TMS) by June 30, 2018 as these technology-based solutions are capable of producing meaningful alerts based on pre-defined parameters/thresholds, for analysis and possible reporting
of suspicious transactions.

The transaction monitoring systems may be customised based on the size, nature and complexity of their business environment and need of the institution. The State Bank of Pakistan said microfinance banks should promote financial inclusion products with enhanced financial literacy and awareness on risk-based ‘know your customer’ requirement and consumer protection. Banks are also needed to enhance their capacity, skills and products required to serve the relevant market segment to achieve the financial inclusion objective, it added.

 

Advertisement

Comments

Advertisement

Topstory

Opinion

Newspost

Editorial

National

World

Sports

Business

Karachi

Lahore

Islamabad

Peshawar

Advertisement