ISLAMABAD, Feb 24: The Securities and Exchange Commission of Pakistan (SECP) has taken further measures for strengthening regulatory framework to minimize the possibility of money laundering in the non-bank financial sector.
According to the SECP, the measures based on the recommendations made by the Anti-Money Laundering (AML) Unit of the SECP.
The Specialized Companies Division of the SECP has also issued directive pertaining to customer identification, compliance officers, payments and deposits.
The SECP sources said that the directives were issued on February 21, 2003 to all Non-Bank Financial Institutions and Modaraba companies.
According to these directives, all Non-Bank Financial Institutions and Modarabas shall accept deposits from an investor only after ensuring that an account has been opened in the investors name using an account opening form that is to be developed by the respective industry associations in consultation with the SECP.
The SECP said that non-bank financial institutions and the modarabas are also required to receive or make payments exceeding Rs50,000 through crossed cheque effective July 1, 2003.
In addition to the above, the SCD is in the process of drafting terms of reference for designating Compliance Officers within the Division.
The sources said that responsibilities of these officers will be to ensure that the anti-money laundering measures are being implemented and followed as per the directions of the commission and the proposed guidelines, regulations, legislation.
The SECP said as part of its continued efforts towards bringing more transparency in the financial market, the SECP, with World Bank assistance, set up an Anti Money Laundering (AML) Unit in January 2003.
SEC’s primary concern is to represent Pakistan as a country fully cognizant and responsible to its international obligations, and to develop the market on International standards.
While keeping in touch with all stakeholders, the AML Unit at the SECP is focusing on the following areas including conduct assessment of financial sector and take steps towards meeting international standards set by IOSCO, FATF, APG and UN, etc.
Printing of a regular brief series on selected AML issues, publication of an electronic newsletter, capacity building of the AML Unit, conduct focused research studies are included in the instructions.
The SECP also asked to create awareness among key stakeholders, such as creditors and institutional investors about money laundering laws and issues, and to establish linkages with other regulatory/research authorities.—APP