Pak to empower central bank to get info on terror funding
Aiming to curb extremism by identifying sources of terror funding, the Pakistan Government has proposed to empower its Central bank to get information relating to any such business transactions from banking companies and financial institutions.world Updated: Jun 11, 2007 13:58 IST
Aiming to curb extremism by identifying sources of terror funding, the Pakistan Government has proposed to empower its Central bank to get information relating to any such business transactions from banking companies and financial institutions.
Through the Finance Bill 2007, it has been proposed that no bank or financial institution shall take any action of whatever nature against an employee of a bank or financial institution for disclosing any information to the State Bank of Pakistan (SBP), local daily Dawn reported on Monday.
Under the amendments proposed in the Banking Companies Ordinance, 1962, banking companies and financial institutions would disclose information on a confidential basis to the SBP about their respective clients according to the needs of the central bank.
If the SBP has reasonable grounds to suspect that a person or company or corporation is involved in money laundering or funding of terrorism or terrorists, it may send such information to the law-enforcement agency having jurisdiction in the matter.
It shall not be unlawful for a person or the SBP or a banking company or an employee thereof to make a disclosure in good faith in compliance with the provisions of this section.
Pending investigations, the SBP may pass an order for freezing the accounts of such a person or company or corporation, provided that the investigation shall be completed by the central bank within 180 days.
The law further says the aggrieved party may make a representation to the SBP.