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Chapter 12 MindMap

1. The document discusses anti-money laundering laws and regulations in Pakistan including the definition of money laundering, offenses and punishments. 2. It also covers designated payment systems and electronic fund transfers, defining these terms and outlining the arrangements and criteria for operating a designated payment system as well as the conditions for revocation. 3. Key topics include the role of financial institutions in monitoring transactions and reporting large transfers to prevent money laundering, and the evidence required to prove an offense has occurred.

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songs 2019 Malik
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134 views1 page

Chapter 12 MindMap

1. The document discusses anti-money laundering laws and regulations in Pakistan including the definition of money laundering, offenses and punishments. 2. It also covers designated payment systems and electronic fund transfers, defining these terms and outlining the arrangements and criteria for operating a designated payment system as well as the conditions for revocation. 3. Key topics include the role of financial institutions in monitoring transactions and reporting large transfers to prevent money laundering, and the evidence required to prove an offense has occurred.

Uploaded by

songs 2019 Malik
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Overview:

CAF 04: Business Laws This chapter discusses :


Chapter 12: Anti-Money Laundering & Electronic Payments Money Laundering: Offence and Punishment Premium Content
Secret Sheet for Quick Revision Designated Payment System (DPS): Arrangements and Revocation (For Spring 2022)
(For students of Muhammad Asif, FCA) Definition of Electronic Money and Electronic Fund Transfer.

Part 1: Anti-Money Laundering

LO 1: Introduction LO 2: Offence and Evidence LO 3: Punishment

Financial Institutions: Role of Financial Institutions: When is a person guilty of offence of money laundering: Evidence of offence of money laundering: For Individuals: (i.e. natural person) For Legal Persons: (i.e. company)
Persons doing activities of: To monitor customers’ transactions If he knows that a property is proceeds of crime and still: Knowledge inferred from factual circumstances. Imprisonment 1 to 10 Years Fine upto Rs. 100 million.
1. Deposits, and Lending. To report large transactions. 1. Acquire, converts, possess, use or transfer such property. Fine upto Rs. 25 million. Individual liability for director,
2. Leasing. 2. Conceals the true nature, origin, location, ownership, movement of such property. Forfeiture of property officer or employees involved.
3. Insurance. 3. Holds or possess such property on behalf of any other person.
4. Money Transfers. 4. Aids, or counsels to commit above acts.
5. Managing means of payments.
6. Business trading in Forex, Mutual
funds, Money market instruments etc.

Part 2: Electronic Payments

LO 4: Designated Payment System (DPS) LO 5: Electronic Fund Transfer (EFT)

Payment System: Electronic Fund Transfer:


System used to settle financial transactions through transfer of money. Transfer of funds, other than by paper instrument (without direct
intervention of bank staff).
Designation of Payment System:
State Bank designates, after inspection of premises, equipment etc. “Electronic Fund” or “Electronic Money”:
Financial Institution, who is authorized to operate a DPS is called “Operator”. Money transferred through electronic device.
Money stored in an electronic device or payment instrument.
Operational Arrangements:
Operate shall make:
1. Criteria.
2. Rights and liabilities of Operator and Participant.
3. Measures to ensure operational reliability and contingency arrangements.
4. Procedures for management of credit, liquidity and settlement risk.

Revocation of Designated Payment System (DPS):


State Bank may revoke if:
1. DPS ceases to operate effectively.
2. Operator submitted false information to SBP.
3. Operator is in winding up.
4. violation of T&C.
5. It is in public interest.

Designation can be suspended (without notice), or revoked (with notice).

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