ICIL AML Services
ICIL Anti-Money Laundering
ICIL is one among the few companies in Pakistan which is providing key AML solutions in accordance with the country AML regulatory framework to Pakistan’s banking industry & sectors regulated by the State Bank of Pakistan (SBP) & Security & Exchange Commission of Pakistan (SECP).
Money Laundering
Money laundering is taking cash earned from illicit activities, and making the cash appear to be earnings from a legal business activity. The money from the illicit activity is considered “dirty” and the process “launders” the money to make it look “clean”.
Hawala – A Non-Banking Parallel Remittance System
In Pakistan Hawala/Hundi system has been widely used by overseas Pakistani working in foreign countries to send money to their relatives living in the deep rural areas where the bank branch network was never or even today exists. The word “Hawala” means trust. It is a parallel remittance system, which works outside the banking and formal financial systems. Hawala is an ancient system of money transfer which originated in South Asia and is now being used across the globe. This system mainly developed in India, before the introduction of western banking practices. However, the Hawala system has been hijacked by money launderers.
Contrary to popular misconception, hawala actually uses the banking system to send funds abroad via bank account which is opened in the name of the exchange company or in Benami accounts opened in some one’s name but operated by other people.
What Is Anti-Money Laundering?
Anti money laundering measures are a set of laws, regulations, and procedures developed to prevent criminals from hiding illegally obtained funds as legitimate income. Anti-money-laundering (AML) laws may cover a limited range of transactions but their implications are far-reaching, e.g. AML regulations require that banks and other financial institutions that issue credit or allow customers to open deposit accounts follow rules to ensure they are not aiding in money laundering.
Globally, in 1989, a group of countries formed the Financial Action Task Force (FATF) to devise international standards to prevent money laundering. In October 2001, FATF expanded its mandate to include efforts to combat terrorist financing.
International Monetary Fund (IMF) also joined the fight against money laundering. IMF like FATF has also forced its 189 members to comply with standards to curb terror financing.
In Pakistan, AML Act 2010 was enacted followed by State Bank of Pakistan-SBP AML/CFT Regulation for banking and non-banking financial Institutes including MFIs, Security Exchange of Commission of Pakistan–SECP Issued a number of circulars, notifications to ensure enforcement of AML/CFT discipline over Insurance companies, Stock Exchanges, Stock brokers. Institute of Chartered Accountants of Pakistan as one of statutory body has also issued a guideline to cover DNFBP which include real estate agents, Jewelers, dealers in precious metals & stones, Lawyers, notaries and other legal professionals, Accountants, Trust and company service providers.
Anti-Money Laundering Solution
ICIL are partners of LexisNexis which is one of the three major companies providing AML screening solutions. LexisNexis provides a combination of data, analytics and global expertise to enable customers to evaluate risk through improved market intelligence. It has the distinction of being used by 6 of the world’s top 10 banks. Besides this 100% of the top 50 banks in US use LexisNexis.