SECP Directs All Stakeholders to Adopt FATF’s Recommendations

The Securities and Exchange Commission of Pakistan (SECP) has directed authorized intermediaries to ensure that their clients, including companies, are not involved in any type of suspicious activities/transactions related to money laundering or terrorist financing activities in line with the relevant Financial Action Task Force (FATF) recommendations.

The SECP has given these directions to the authorized intermediaries of companies through draft amendments to the Intermediaries (Registration) Regulations, 2017 (the Regulations) issued through SRO1079 (I)/2018.

The SECP has further directed the authorized intermediaries to ensure the client is not placed on the United Nations Security Council (UNSC) list of designated persons or entities linked to terrorist financing or against whom a ban, sanction or embargo subsists, as available on its website.

The authorized intermediary and its employees to whom it has delegated the function shall act with due care, skill and diligence in carrying out their duties and responsibilities and ensure that the documents filed on behalf of company or promoters of a company or foreign company complies with the requirements of the Act and other applicable laws.

Following is the text of the SRO 1079 (I)/2018 issued on Wednesday:

The following draft amendments to the Intermediaries (Registration) Regulations, 2017 (the Regulations) which are proposed to be made by the Securities and Exchange Commission of Pakistan, in exercise of powers conferred by section 512 of the Companies Act, 2017 read with clause (b) of section 43 of the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997), are hereby published for eliciting public opinion thereon and notice is hereby given that comments, if any, received within fourteen days of the date of this notification will be taken into consideration by the Securities and Exchange Commission of Pakistan.

Draft Amendments

Under regulation 16, in sub-regulation (1), after clause (ii), the following new clauses shall be inserted, namely:

(iia) ensure that while acting as company formation agent or providing other services, their clients are not involved in any type of suspicious activities or transactions implying money laundering or terrorist financing activities in line with the relevant Financial Action Task Force (FATF) recommendations;

(iib) ensure that the client is not placed on the United Nations Security Council (UNSC) list of designated persons or entities linked to terrorist financing or against whom a ban, sanction or embargo subsists, as available on its website.


  • To kill terrorism, kill the idea and beneficiaries i.e. the snakes up our sleeves who make dollars and riyals while wearing uniforms. Such childish measures of SECP is just tokenism and will neither help nor satisfy FATF.

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