Approval for establishing new correspondent relationship has to be taken from senior management. Banks are expected to investigate unusually large transactions and all unusual patterns of transactions to identify any suspicious transaction that is required to be reported to concerned authorities. The information to be reported by banks/ DFIs include title, type of account, numbers of accounts involved, detail of transactions, reasons of suspicion.
The employees of banks/ DFIs are strictly prohibited from disclosing the fact to any person that certain transaction has been or is being reported for investigation. SBP has established an AML/CFT unit to deal with the issues of money laundering and CFT.