SECP tightens UBO rules to meet IMF condition

April 21, 2026 (MLN): Pakistan is stepping up efforts to meet International Monetary Fund (IMF) governance benchmarks by tightening oversight of corporate ownership structures and moving against anonymous company setups.

The Securities and Exchange Commission of Pakistan (SECP) has launched a nationwide drive requiring all companies to disclose their ultimate beneficial owners (UBOs), a key transparency measure aimed at eliminating so-called benami entities and strengthening financial accountability.

Under the directive, companies must submit accurate UBO information via Form-19 on the SECP’s eZfile portal by April 30, 2026. The requirement is part of Section 123A of the Companies Act, 2017, which mandates disclosure of individuals who ultimately own or control a company, directly or indirectly.

The regulator said the move is designed to curb misuse of corporate structures, enhance transparency, and reinforce Pakistan’s anti–money laundering framework and safeguards against illicit financial flows.

UBOs are defined as natural persons who exercise significant control or ownership over a company, even if they are not formally listed as shareholders or directors.

SECP noted that several companies have yet to comply with the mandatory filing requirement and warned that enforcement action will follow the deadline.

Companies are required to maintain an updated internal register of beneficial ownership and report any changes annually. The filing process includes disclosure of ownership structure, control percentages, and identifying details of ultimate owners.

Non-compliance carries financial penalties of up to Rs1 million for directors or officers and up to Rs10 million for companies, under the Companies Act, 2017.

The regulator said strict enforcement will begin after April 30, as Pakistan aligns its corporate governance framework with international transparency standards.

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