As banks and numerous other financial institutions have been using a domestic politically exposed persons (PEP) database for the past few months to curb corruption. Hence in order to comply with the regulations of the Financial Action Task Force (FATF), the First Paramount Modaraba (FPM) has developed a new database. FPM is an Islamic non-banking financial institution that has developed an extensive database that consists of over 110,000 PEPs.
In a nutshell, all monetary organizations that are bound by the government’s directive will keep a check on the respective individuals through this database. This includes all sorts of banks including private and public financial institutions located across the country. Furthermore, the database also includes people that are holding politically powerful offices who could be involved in money laundering.
The sole purpose to even develop this database was to keep the country out of FATF’s grey list. Despite of Pakistan completing nearly 26 out of 27 action items, the FATF has encouraged the country to target its final Combating Financial Terrorism (CFT) related item by taking precautionary measures by using this database.
