Showing posts from December, 2016

How To Perform Customer Due Diligence / KYC On A Trust? What Are The Main Risks From Money Laundering Perspective?

By Sikander Hayat 

Before we start to have a look at the KYC requirements for a Trust, we need to understand some basics about this entity type.
1.What kind of legal entity is a Trust 2.How many kinds of common Trusts structures are there 3.Who normally use Trust entities and 4.From Money Laundering point of view, what are the major risks
From money laundering point of view, Trusts can be a very tricky type of entity as it can be structured in such a way to avoid detection of real beneficiaries. Trusts can also be used as avehicle for tax evasion. Trusts can be set up in jurisdictions which are very opaque and make it difficult for any law enforcement agencies or counterpartiesto be sure of who is actually behind the trust.  We also need to watch out for situations where:
1.The client establishes a trust when there seems to be little reason to do so 2.The trust is established in a jurisdictionwhich has limited AML/CTF

What Is A Trust? A trust is a relationship whereby property is held by o…

How To Perform KYC Checks on a Central Bank? How To Onboard a Central Monetary Authority?

Central Banks are not a very difficult entity to on-board as a counter party because risk based approach will suggest that it is one of the least risky proposition if done correctly.
Here are the main steps to perform counterparty check on a Central Bank:
1.Check on Bank for International Settlements (BIS) that it listed on that website.  The name should match exactly and link should take you to your potential counter party’s website.  The website link for BIS is .  This is the confirmation that your counterparty is a central bank.
2.Get the proof of existence and name. This can be achieved by using central bank’s website and Bankers Almanac. Bankers Almanac is an acceptable source for most banks. The link to their website is This is not a free resource and your organization will have to pay for this website but it is very important source for banking institutions as it can confirm a lot of information which is accepte…

Fall of Aleppo & Baghdad - Who is Responsible?

By Sikander Hayat 

Syria is suffering and whole Muslim world is suffering because of over emphasis on religious identity. Shia, Sunni and countless other sects are fighting to implement their form of Islam. 

Islam is a simple religion but people have hijacked it and made it into something which it is not. At the heart of all wars is this fight for identity. Geopolitical forces are using this rift to further their aims. 

Sipah Sihaba, Siphah Mohammad, Lashkar-e-Jhangwi etc. are symptoms of a deeper malaise in Pakistani society. 

Following article defines one of these struggles taking place in Pakistan.