June 21, 2023 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has proposed significant amendments to the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Regulations, 2020, a press release issued today stated.
These amendments aim to enhance the scope of regulations to effectively combat proliferation financing and strengthen the country's financial integrity framework.
SECP has invited the stakeholders to provide their comments and suggestions on proposed amendments within the next 14 days.
Proliferation financing, which refers to the financial support provided for the proliferation of weapons of mass destruction (WMD) or their delivery systems, has emerged as a significant global concern.
Moreover, recognizing the need for a comprehensive approach to address this issue, SECP has taken proactive steps to strengthen the existing AML/CFT Regulations.
The proposed amendments to the AML/CFT Regulations 2020 primarily focus on expanding the regulatory framework to encompass measures specifically tailored for combating proliferation financing & diminishing the frequency from existing five years to three years to treat an account as dormant.
SECP further aims to enhance the effectiveness of the regulations by adding provisions, among others relating to reliance on third parties for CDD and requirements applicable to foreign branches and subsidiaries of regulated persons.
The public consultation process is an essential component of SECP's commitment to transparency and inclusiveness.
The involvement of stakeholders is crucial for the development of robust regulations that align with the evolving needs of the financial ecosystem.
