SECP steps up crackdown on money launderers

September 12, 2018 (MLN): A Joint Investigation Team (JIT) constituted by the Securities and Exchange Commission of Pakistan (SECP) has been visiting the offices of multiple brokerages in Pakistan to check whether these firms are complying with the Anti-Money Laundering Guidelines issued by the regulator, said sources familiar with the matter.

The raids are part of the SECP’s mandate to put a stop to avenues of channeling illegal funds out of the country, with the main targets being those people who trade in securities beyond their legal and declared incomes.

Towards that end, the regulator has been stepping up its check on seemingly innocent but fake accounts like those in the names of housewives and students, in addition to those belonging to politically exposed persons.

On September 7, 2018 the SECP issued its guidelines on Anti-Mondey Laundering and Countering Financing of Terrorism Regulations 2018 to supplement the regulations by elaborating on the general requirements of the legislation to help regulated persons (RPs) understand their obligations and establish an effective AML/CFT regime.

To do that, all regulated persons, including brokerages, were required to set up adequate systems and internal policies and procedures that took into account customer due diligence measures and record keeping procedures, along with screening procedures and employee training programs that could prevent the misuse of technological developments in Money Laundering and Terror Financing Schemes.

The guidelines were an addition to a broader crackdown on money launderers initiated by the incoming government as had been promised in its electoral agenda.

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