SECP Explains Anti Money Laundering/CFT Requirements

The Securities and Exchange Commission of Pakistan has rescinded the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) reporting requirements prescribed vide circulars 8, 9 and 10 of 2017 as well as the direction 1 of 2017.

These AML/CFT reporting requirements have been replaced by the reporting framework prescribed under SECP’s SRO 245 (I)/2019 dated February 22, a press release said.

SRO 245 (I)/2019 lays down a comprehensive reporting mechanism in line with the Financial Action Task Force recommendations and SECP AML/CFT Regulations, 2018.

It has strengthened reporting from the regulated persons, including; securities brokers, futures brokers, insurers, takaful operators, non-banking finance companies (NBFCs) and modarabas as required under the rescind circulars.

Pursuant to the SRO 245 (I)/2019, the regulated persons are required to submit annual risk and compliance assessment reports and six monthly information/data to the SECP to demonstrate adequacy and effectiveness of AML/CFT compliance framework.

Furthermore, a compliance report on the UN Security Council resolutions is to be submitted within three day of receiving the intimation from the SECP.

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