In order to sensitize its regulated sectors such as the capital market, insurance, NBFCs, and modaraba about regulatory framework on anti-money laundering and countering the financing of terrorism (AML/CFT), the SECP organized a two-day awareness session in Karachi.
The session was aimed at developing an understanding of AML/CFT obligations and establishing an effective AML/CFT risk assessment and compliance framework for detecting and reporting suspicious activities.
It may be added that the SECP notified the Anti-Money Laundering and Countering Financing of Terrorism Regulations, 2018, in June and issued supplementary guidelines in September to help regulated persons understand requirements of the legislation in applying national AML/CFT measures.
Ms. Khalida Habib, Executive Director, SECP, apprised the participants about the financial institutions’ obligations under AML/CFT regime. She highlighted the regulatory measures for the regulated persons to safeguard them from being used by money launderers and terrorist financiers. She also emphasized the requirement of risk assessment, internal policies, procedures and controls, customer due diligence measures, record keeping procedures and UNSCR compliance.
Furthermore, the outcomes of the National Risk Assessment and FATF monitoring process were also shared with the participants. Representatives from the Financial Monitoring Unit (FMU) explained the red flag indicators and unusual transactions relevant to each sector also answered inquiries related to subsequent reporting of STR/CTR to the FMU.