How should the regulated person respond to discrepancies (such as credit blocks, follow-up periodicity etc.) that may arise during on-going monitoring?

SECP AML/CFT Regulations and guidelines are reproduced below which may be referred to for guidance:
SECP AML/CFT Regulations, 2018 Section 6 – Customer Due Diligence:
(11) “where regulated person is not able to satisfactorily complete required CDD measures, account shall not be opened or existing business relationship shall be terminated and consideration shall be given if the circumstances are suspicious so as to warrant the filing of an STR in relation to the customer”.

SECP AML/CFT Guidelines section 9(b) (iii) and (iv) – Existing Customers:
iii. An RP is entitled to rely on the identification and verification steps that it has already undertaken, unless it has doubts about the veracity of that information. Examples of situations that might lead an institution to have such doubts could be where there is a suspicion of money laundering in relation to that customer, or where there is a material change in the way that the customer’s account is operated, which is not consistent with the customer’s business profile.
iv. Where an RP is unable to complete and comply with CDD requirements as specified in the Regulations, it shall not open the account, commence a business relationship, or perform the transaction. If the business relationship has already been established, the RP shall terminate the relationship. Additionally, the RP shall consider making a STR to the FMU.