SECP establishes intelligence unit to detect financial fraud

October 14, 2026 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has approved the establishment of a Corporate Intelligence Unit (CIU) to proactively identify suspected financial fraud schemes, monitor illegal financial activities and help protect investors from potential losses.

The unit will focus on registered companies suspected of operating Ponzi or pyramid schemes, accepting deposits or providing loans without the required license, or conducting business beyond their approved objectives.

The CIU will monitor publicly available information, including news reports, social media platforms and digital advertisements, to identify suspicious activities and potential regulatory violations before complaints are received.

The unit will track recurring patterns and link information from multiple public sources to identify emerging risks and strengthen the Commission’s early-warning capabilities. Verified leads will be referred to the relevant SECP departments for inquiry or enforcement action.

Where appropriate, information may also be shared with relevant agencies, including the Federal Investigation Agency (FIA), National Cyber Crime Investigation Agency (NCCIA), State Bank of Pakistan (SBP) and National Accountability Bureau (NAB), to support coordinated action against suspected financial misconduct.

The initiative is expected to strengthen the SECP’s risk-based surveillance, enable timely regulatory intervention and help prevent further investor losses by identifying suspicious financial activities at an early stage.

SECP Chairman Dr. Kabir Ahmed Sidhu said the Corporate Intelligence Unit would strengthen the Commission’s risk-based surveillance by converting open-source information into verified regulatory leads.

He added that early identification of suspicious activities could enable timely intervention, improve coordination among relevant agencies and help protect investors before losses escalate.

The CIU will operate directly under the supervision of the SECP chairman and will be established as part of the Chairman’s Secretariat under Section 20 of the SECP Act, 1997.

The unit will be headed by a Director or Additional Director and supported by a team of two officers.

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