The State Bank of Pakistan on Thursday asked banks and DFIs not to allow use of personal accounts for business purposes. According to BPRD Circular No 42, the central bank has announced amendment in Regulation M-2 (Anti-Money Laundering Measures). The SBP has referred to Prudential Regulation M-2 for Corporate/Commercial Banking as amended vide BPRD Circular Letter No 07 dated March 9, 2009.

According to the circular, now it has been decided to substitute the paragraph (e) of Prudential Regulation M-2 with the following: "(e) Banks/DFIs shall not allow personal accounts to be used for business purposes except proprietorships, small businesses and professions where constituent documents are not available and the banks/DFIs are satisfied with KYC profile of the account holder, purpose of relationship and expected turnover of the account keeping in view financial status & nature of business of that customer."

Copyright Business Recorder, 2010