SBP extends banking relaxations to mitigate Covid till June 30

KARACHI: The State Bank of Pakistan (SBP) has decided to continue banking relaxations till June 30, 2022 to mitigate the impact of Covid-19 pandemic, a statement said on Friday.

The central bank previously amended regulations related to anti-money laundering (AML) and counter financing of terrorism (CFT).

According to the statement, banks and microfinance banks (MFBs) may utilise National Database and Registration Authority (Nadra) Verisys in place of biometric verification, where the same is not possible or appropriate due to risk of Covid-19 spread, while complying with controls and measures stipulated in the SBP circular letters.

The banks and MFBs will continue with enhanced transaction limit of Rs500,000/month and maximum account balance of Rs500,000 for non-biometrically verified merchant accounts.

Authorised financial institutions (AFIs) will not downgrade non-biometrically verified branchless banking (BB) legacy Level-1 accounts to Level-0.

However, unless instructed otherwise, the above mentioned relaxations will automatically stand withdrawn upon expiry of the extended timeline of June 30, 2022, the statement added.

The AFIs may continue to provide person-to-person (P2P) transfers through BB channel as stipulated under branchless banking regulations for financial institutions.

Banks, development finance institutions (DFIs) and MFBs will immediately revert back to the applicable instructions on blocking accounts without valid identity documents after serving one month prior notice, and marking accounts as dormant or in-operative as defined in the AML/ CFT/ CPF regulations.

Conducting biometric verification for all cash in or cash out transactions in BB Level-0 accounts as stipulated in branchless banking regulations for financial institutions.

Conducting staff visits to newly acquired agents as stipulated in the framework for branchless banking agent acquisition and management.

For the agents acquired during the Covid-19 period, for whom visits have not yet been conducted, AFIs will perform the same by March 31, 2022, positively.

The revised instructions will be applicable with effect from January 01, 2022, the central bank added.