News Detail
Event Title: Senator Farooq Hamid Naek, Convener Sub-Committee of The Senate Standing Committee on Finance and Revenue Presiding over a Meeting of The Committee at Parliament Lodges, Islamabad
Event Date: 2026-05-07
Senate Panel Directs SBP to Submit SOPs on PEPs and FATF Regulations
The meeting of the Sub-Committee of the Senate Standing Committee on Finance was held at Parliament House under the convenorship of Senator Farooq Hamid Naek. Senator Muhammad Abdul Qadir attended the sub-committee meeting. Senator Anusha Rahman Ahmad Khan attended the meeting over Zoom.
The Sub-Committee was briefed on PEPs regulations, including the definition of family members and close associates. It was informed that family members are individuals related to a PEPs either directly or through marriage or similar forms of partnership. The Convenor observed that such definitions are largely based on Western concepts, whereas in Muslim societies family standards are generally determined through blood relations. Officials of the State Bank of Pakistan (SBP) informed the Committee that, under SBP regulations, PEP relations include the spouse of the PEP, lineal descendants and ascendants, and siblings of the PEP.
Senator Mohammad Abdul Qadir emphasized that banks must facilitate their customers and avoid creating unnecessary difficulties for PEPs in their daily financial transactions.
The Deputy Governor, State Bank of Pakistan, further briefed the Committee on FATF standards applicable to family members and close associates of PEPs. It was informed that banks are empowered to take reasonable measures to establish the source of wealth and source of funds, and to conduct enhanced ongoing monitoring of business relationships in line with FATF requirements.
The Deputy Governor, SBP, suggested that PEPs should approach designated focal persons at banks for facilitation and guidance. During the discussion, the Convenor highlighted concerns regarding the operation of personal accounts, particularly in cases where the account holder is neither associated with any business nor has been engaged in business activities with any relative.
The Convenor of the Sub-Committee questioned the requirement for independent children of PEPs to submit wealth statements or financial details and raised concerns regarding the lack of confidentiality in banking practices. He observed that such requirements create unnecessary difficulties for PEPs. In response, the Deputy Governor stated that transaction monitoring is a routine practice applicable to all customers and that banks generally seek clarification only for suspicious transactions identified through a robust monitoring system. The Convenor recommended that banks should focus only on suspicious transactions instead of demanding wealth statements indiscriminately.
Senator Anusha Rahman suggested replacing the term “suspicious transaction” with a more appropriate and less stigmatizing expression. During the briefing, the Deputy Governor informed the Committee that the State Bank had not yet issued regulations regarding cryptocurrency. It was stated that a separate authority, Pakistan Virtual Assets Regulatory Authority (PVARA) for crypto assets is being established, which will issue licenses and regulate. Whilst regulatory framework for bank regarding crypto currency is under discission with relevant stake holders.
At the conclusion of the meeting, the Convenor of the Sub-Committee directed the State Bank of Pakistan to submit the FATF regulations, instructions issued to banks, and the Standard Operating Procedures (SOPs) formulated by the SBP regarding PEPs. The Deputy Governor assured the Committee that all relevant instructions and regulations issued by the SBP would be furnished to the Sub-Committee.