The Securities and Exchange Commission of Pakistan (SECP) has issued 83 orders against the companies which committed different violations of the anti-money laundering laws during 2022-23.
The SECP’s annual report (2022-23) issued on Wednesday revealed that during the current period, the Commission took proportionate, dissuasive, and effective enforcement actions to uphold the laws it administers. These measures led to corrective measures, significantly enhancing compliance within the corporate sector with the relevant laws.
Furthermore, 83 orders addressing AML violations by the regulated entities, resulted in penalties of Rs. 10.609 million for the year. The improvements made by the regulated entities in their systems and controls to comply with AML/CFT regulations resulted in a reduction in the number of instances of violations, and accordingly, proportionate penalties have been imposed considering the riskiness of violations.
To ensure an effective enforcement regime to safeguard public interest, stern actions were taken against companies involved in illegal deposit taking. This entailed imposing substantial penalties totaling Rs. 5,222 million on twenty-four (24) such companies and their directors.
Furthermore, 41 directors of such companies were debarred from becoming directors of any other company and incorporating new companies. Additionally, 21 sanctions were granted to initiate winding up process of companies. In totality, 742 orders were issued to unlisted companies imposing penalties amounting to Rs. 5,245 billion, SECP added.
