Regulated bodies sensitised on anti-money laundering measures

  • SECP emphasises on establishing an effective risk assessment framework to detect and report suspicious activities

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has organized a two-day awareness session with regard to the regulatory framework on anti-money laundering and counter-financing of terrorism (AML/CFT).

The session, held in Karachi, was aimed at sensitising the commission’s regulated sectors such as the capital market, insurance companies, non-banking financial companies (NBFCs) and modarabas on the AML/CFT obligations. It also emphasized on establishing an effective AML/CFT risk assessment and compliance framework in detecting and reporting suspicious activities.

The SECP in June had notified the Anti-Money Laundering and Countering Financing of Terrorism Regulations, 2018, and in September issued supplementary guidelines to help regulated people understand the requirements of legislation in applying national AML/CFT measures.

In her address during the session, SECP Executive Director Khalida Habib apprised the participants about the financial institutions’ obligations under the AML/CFT regime. She highlighted the regulatory measures necessary for people to safeguard themselves from being used by money launderers and terrorist financiers.

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She also emphasized the requirement of risk assessment, internal policies, procedures and controls, customer diligence measures, record keeping procedures as well as compliance the United Nations Security Council Regulations (UNSCR).

Furthermore, the outcomes of the National Risk Assessment and Financial Action Task Force (FATF) were also shared with the participants.

Representatives from the Financial Monitoring Unit (FMU) explained the red flag indictors and unusual transactions relevant to each sector. They also answered enquiries related to subsequent reporting of Suspicious Transaction Report/Currency Transaction Report (STR/CTR) to the FMU.

A large number of participants from the regulated sector as well as self- regulatory bodies and associations such as the Pakistan Stock Exchange, Central Depository Company, National Clearing Company of Pakistan Limited, Pakistan Mercantile Exchange, Mutual Funds Association of Pakistan and Modaraba Association of Pakistan and Insurance Association of Pakistan attended the session.

It was an interactive session and various issues relating to the implementation of the risk-based approach were discussed. The SECP also solicited the feedback from the participants in respect of the AML/CFT framework.

It is pertinent to mention that the session was first in a series of awareness/training session as part of the outreach program to enhance understanding on the money laundering/terrorist financing risks and obligations thereunder.


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