FATF Nod: SBP Extends Prize Bonds Redemption Deadline

The novel coronavirus has proved to be a blessing in disguise for holders of prize bonds as the Financial Action Task Force (FATF) has extended the deadline for redemption or encashment of Rs 40,000 national prize bonds.

The government has extended the date for redemption of prize bonds worth Rs 40,000 to December 31, 2021, from December 30, 2020.

The extension has been given after a green signal from FATF Secretariat amid the pandemic situation, News360 learned through sources.

Hence, the State Bank of Pakistan (SPB) extended the deadline for encashment of Rs 40,000 prize bonds and issued a circular in this regard on its website too.

Earlier, the deadline for encashment or redemption of Rs 40,000 bonds was December 30, 2020, in light of FATF restrictions against terror financing and money laundering.

The extension has been given for a year amid the novel coronavirus pandemic situation.

On instructions of FATF, the government has decided to discontinue prize bonds worth Rs 40,000.

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Meanwhile, the government of Pakistan has also discontinued prize bonds worth Rs 25,000 bonds.

Instead, it has introduced premium bonds of the same denomination.

Sources in the finance division told News360 that ending Rs 25,000 bonds worked for Pakistan and FATF announced relief in the deadline for Rs 40,000 prize bonds given Pakistan’s commitment against money laundering and terror financing.

The big investors are interested in purchasing bonds of large denominations as they offer a huge sum on the win.

However, the large denomination bonds are also widely used by unscrupulous elements for legalizing black money by bringing it into circulation through prize bonds.

Pakistan is under FATF’s grey list and the government is taking measures to block channels for mainlining black money into the market.