ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has made it mandatory for regulated persons to conduct customers’ due diligence under the Anti-Money Laundering Act.
The SECP issued directives through SRO 105(I)/2021 related to customers due diligence. The regulated person has been explained as “securities brokers, futures brokers, insurers, takaful operators, non-banking finance companies (NBFCs) and Modaraba regulated by SECP under administered legislation”.
In exercise of the powers conferred under section 6A of the AML Act, the SECP directed all regulated persons to comply with following customer due diligence requirements under section 7A(1)(b) of the AML Act and section 8(1) of the SECP AML/CFT Regulations, 2020, namely: (a). The regulated persons shall, at minimum, conduct CDD of their customers/ occasional customers in circumstances and matters set out in section 7(A)1 of the AML Act; (b) For the purposes of section 7(A)(1)(b) of the AML Act, the regulated persons shall conduct CDD in respect of every occasional customer.
Any person to whom this directive applies and who contravenes or fails to comply with the requirements of this directive shall be subject to sanction in accordance with AML/CFT Sanctions Rules, 2020, issued under the AML Act, 2010, and imposed by the commission according to Clause (h) of Sub-section (2) of Section 6A of AML Act.
