June 28: The SECP has organized three awareness sessions for the securities and commodities brokers, insurance/takaful companies and non-banking finance companies in Karachi. The sessions gave awareness about terrorist financing framework and how it differed from money laundering.
The objective of the sessions was to raise awareness among financial institutions on the TF – national risk Assessment and its addendum in terms of TF threats and vulnerability leading to the overall TF risk associated with terrorist financing in Pakistan. In light of the results of the TF– national risk assessment, the financial institutions have been advised to identify gaps and improve their AML/CFT policies and develop risk mitigation strategies accordingly.
Furthermore, legal framework and reporting obligations under SRO 245 (I)/ 2019 dated February 22, 2019, for the SECP regulated sector were explained in detail. The SRO requires financial institutions to file their AML/CFT annual risk assessment, compliance assessment framework and requisite data/information annually by June 30. In this regard, the methodology for risk assessment and compliance framework as prescribed in the SECP AML/CFT Regulations, 2018 and guidelines were discussed to help the regulated entities with filing of their AML/CFT returns with the SECP.
Each session concluded with a discussion on issues relating to the implementation of SECP’s AML/CFT regime in particular targeted financial sanctions and asset freezing obligations on the regulated entities