Consumer Banking – BNK603
Assignment No. 01
Due Date: 30 November 2016
Mr. Ali Ikram is a chartered accountant by profession and currently running business in
the name of “Ali Traders” as sole proprietor. The primary nature of his business is to
import auto parts from Japan for sale in local markets in Pakistan. Moreover, he is
considered as a business tycoon holding good reputation in the market, and has appointed
his cousin, Mr. Muhammad Mussa, as Manager Finance in his company at a monthly
salary of Rs. 100,000/- for managing business affairs.
For the purpose of meeting banking needs, Mr. Mussa approached ABC Bank Ltd and
requested the branch to open his individual account. The Banker conducted his interview
and asked him to provide his source of income. In-spite of providing physical document
for source of income, Mr. Mussa furnished the reference of his well renowned cousin for
relaxation in documentation and informed the banker verbally that he is currently
working in his cousin’s firm on monthly remuneration of Rs. 100,000/- and has initial
deposit of 5 Million.
The banker, in anticipation of healthy potential business, then asked Mr. Mussa to
provide a copy of his CNIC only for account opening purpose. Mr. Mussa provided him
copy of CNIC alongside the cheque for Rs. 5,000,000/- as initial deposit. After he left
branch premises, the banker prepared fake source of income; filled the introducer column
by writing his own name for incentive purpose, and opened his account with an initial
deposit of 5 Million.
After few days, Mr. Mussa approached the bank with three cheques favoring ‘M/S Ali
Traders’ amounting to Rupees 6 Million each. Branch manager of ABC Bank Ltd.
greeted him well due to hefty deposit and instructed the staff to accept these cheques for
onward credit to account of Muhammad Mussa despite change of title/payee name, and
afterwards credited the proceeds in his account. Since Mr. Mussa proved to be a high
profile client, the branch manager forecasted even greater potential business from this
customer so he facilitated him in every aspect. Some of the foreign telegraphic transfers
were also credited to the account of ‘Muhammad Mussa’ which were actually addressed
to ‘M/S Ali Traders’ as beneficiary. There were several instances where this customer
deposited third party cheques to be credited in his personal account.
After two months, few officials came from NAB (National Accountability Bureau)
inquiring some cases of money laundering and terrorist financing where M/S Ali Traders,
Ali Ikram, and Muhammad Mussa were named. It was revealed on banker that Mr.
Mussa was involved in some serious financial crimes such as Money laundering and tax
evasion and concealing the actual source of funds. Even worsening was the fact that few
instances were also observed where they were involved in terrorist financing.
Keeping in mind the above scenario you are required to answer the following questions:
What is meant by beneficial owner? Who is actual beneficial owner in above case?
What basic regulatory requirements were not implemented in true letter of spirit?
Who is guilty in above case and how?
Also mention the punishment of non-compliance of these regulations with
reference to relevant law.
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Please anyone here ...discuss the assignment
Please discuss .... Who is the beneficial owner here?
Sir please little help...
mr ali akram
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