Introduction
Institute of Chartered Accountants of Pakistan (ICAP) has issued Circular 13 of 2018 and The Guide for Accountants in respect of ‘Anti-Money Laundering and Counter Financing of Terrorism.
Commentary
Primarily in the light of recommendations from Financial Action Task Force (FATF), Government of Pakistan has increased its efforts to implement the Anti-Money Laundering Act 2010 (AML Act) in its true letter and spirit.
‘Accountants’, as an “Reporting Entity” are recognized as professional service providers, therefore, in to order to counter the Money Laundering which has the direct link to Terror Financing are now fundamentally required to embrace certain new procedures for scrutiny. On the other hand, Government has provided substantial legal cover as well and treat Money Laundering as an offense of criminal nature.
ICAP has facilitated its members and more so the practicing firms and issued the attached Guide which would provide them following core understandings:
- Scope and Nature AML and CFT requirements related to services of Accountants.
- Local Legislation and FATF Recommendations for Accountants.
- Compliance Framework of AML and CFT through risk based methodology
- The ‘Suspicious Transaction Reporting’ and ‘Currency Transaction Reporting’ requirements laid down in AML Act.
Link of Document(s)
The Circular 13 of 2018 and the complete Guide can be accessed through following links:
- Circular Circular No 13 2018
- A Guide for Accountants’ (the Guide) AML & CFT Guide for Accountants
