In a step towards intensifying efforts against money launderers, securities brokers have been asked to submit details regarding ‘Politically Exposed Persons’ (PEP) to the Pakistan Stock Exchange, no later than September 5, 2018.
Among the information required, include the Name of the Client and the beneficial owner identified as a PEP, the status of the client (customer, or beneficial owner), the UIN number of the PEP, and the nature of the PEP i.e. whether he is of a foreign or domestic origin.
According to a notification on the Pakistan Stock Exchange, all market participants have been reminded of the Securities and Exchange Commission of Pakistan’s regulations pertaining to money laundering.
The Anti Money Laundering and Countering Financing of Terrorism Regulations 2018 issued by the SECP require Securties Brokers to develop and implement appropriate internal risk management systems, policies, procedures, and controls to determine if any customers or a beneficial owner is a ‘Politically Exposed Person.’
Politically Exposed Persons generally include individuals in prominent positions, such as senior politicians: senior government, judicial or military officials; senior executives of State Corporations and their family members and close associates.
In addition, Securities Brokers are also directed under the regulations to perform Enhanced Due Diligence of foreign and domestic PEPs, their family members and close associates in accordance with 9(4) of the Regulations, in addition to other requirements.
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