SECP warns companies to disclose beneficial owners

The Securities and Exchange Commission of Pakistan (SECP) issued a final warning to registered companies to disclose their beneficial owners or a penalty of up to Rs10 million will be imposed on them.

SECP would be concluding the ongoing adjudication proceedings that are aligned with international practices to improve transparency in the system.

“Every company is required by law to obtain information of its ultimate beneficial owners (UBOs) and file a declaration to this effect with SECP,” mentioned the company regulator.

SECP has reminded companies, periodically, to submit the Beneficial Ownership Declaration (BOD) on Form 45 online.

The reminder stated, “It is important to note that failure to file the requisite Form 45 may result in the imposition of penalty up to Rs10 million, and therefore, SECP has issued a final announcement to companies to comply with this requirement, before the conclusion of the adjudication proceedings,”