ISLAMABAD: An Anti-Money Laundering (AML) Cell has been set up by the Securities and Exchange Commission of Pakistan (SECP) which aims to address any potential misdeeds within the capital market, insurance sector, Non-Banking Finance Company (NBFC) and not-for-profit corporate sector.
The SECP has approved thresholds for various sectors for reporting of investments made in securities markets, NBFCs and the insurance sector. The AML cell comprises of senior SECP officers from each supervisory area.
For life insurance products, the defined threshold is the annual premium of Rs5 million for a single life policy.
For securities brokers, the threshold shall be Rs5m for an individual investor, Rs25m for corporate entity and Rs20m for propriety broker. For AMCs/modarabas/NBFCs, the threshold is of Rs100m for corporate entities, Rs50m for trusts and Rs10m for individual investment.
No reporting will be required of financial institutions, public listed companies, licensed entities, AMCs, mutual funds, insurance companies and government administration/entities investing in AMCs/modaraba/NBFCs.
Further, any donation of Rs5m and more from a single source to a not-for-profit section 42 company will also be reported to the SECP.
Published in Dawn, March 31st, 2017
