Securities and Exchange Commission of Pakistan (SECP) has taken effective measures to address any potential of money laundering and terror financing within the capital markets, insurance, the NBFCs and the non-profit corporate sector.
According to the annual report of the SECP (2017-18) issued here on Friday, presently, the SECP is regulating 236 securities brokers, 137 Commodities brokers, 67 Non-banking finance companies (NBFCs), 30 Modarabas, 50 Insurance companies and 553 Non-profit organizations (NPOs).
Following the promulgation of the SECP AML/CFT Regulations, 2018, transition to risk-based program remains a challenging task. In order to provide guidance to the regulated entities Guidelines to the SECP AML/CFT
Regulations, 2018, will be issued in addition to developing the risk-based approach for the SECP''s supervisory regime and enforcement action policy against non-compliant financial institutions.
In conjunction with the financial institutions, monitoring framework for associations with charitable and non-profit objects licensed under Section 42 of the Companies Act, 2017, will be developed and efforts will be made to enhanced the effectiveness of implementation of UN Security Council resolutions, SECP said.
The SECP works in close collaboration with national stakeholders'' such as FMU, SBP and international assessors for APG/IMF/World Bank mutual peer review and evaluation of SECP''s regulated financial sector.
In line with the government''s agenda of combating money laundering and terror financing, the SECP has taken effective measures to address any potential of money laundering and terror financing within the capital markets, insurance, the NBFCs and the non-profit corporate sector.
During the year, gaps in the implementation of FATF recommendations were addressed prior to APG Mutual Evaluation. In the wake of the FATF''s grey listing, implementation of FATF''s action plan was strategized by collaborating with various national stakeholders to demonstrate the effectiveness of the framework and systems as required under international obligations.
As a member of the Asia Pacific Group, it was mandatory for Pakistan to adopt AML/CFT regulatory framework in compliance with FATF recommendations. Following the gap analysis review of the existing AML/CFT framework with the FATF''s standards, the SECP notified Anti-Money Laundering/Counter Financing of Terrorism Regulations,
2018 vide notification S.RO. 770 (I)/2018 dated June 13, 2018, for the SECP regulated financial institutions namely securities brokers, commodities brokers, insurance companies, non-banking finance companies and modarabas.
A single set of regulations for all the aforementioned financial institutions harmonize the AML/CFT regime. The Anti-Money Laundering Department consolidates the efforts of the operational departments by providing them necessary assistance and support to enhance the compliance level and aims to raise awareness among regulated entities on their obligations under the AML/CFT regime, SECP added.