SECP urges non-bank financial sector to establish sustainable AML/CFT compliance culture

October 27, 2022 (MLN): The Securities and Exchange Commission of Pakistan (SECP) stressed the need to cultivate a sustainable and resilient culture of AML/CFT compliance within the non-bank financial sector, said a statement issued by the commission on Thursday. 

Talking at the training program arranged by MUFAP, the Commissioner SECP, Ms. Sadia Khan, highlighted the critical role of Non-Banking Finance Companies (NBFCs) in preventing the use of financial systems by criminal elements.

She appreciated the effort of the industry to improve its capabilities for safeguarding the sector against the risk of money laundering, fraud, and terrorism. The session was attended by compliance professionals and practitioners of asset management companies.

Commissioner Sadia emphasized that SECP with the support of the government has introduced various regulatory reforms to rationalize the legislative requirements and refined the regulatory processes.

However, in order to make Pakistan the chosen destination for international investments, the industry needs to implement an effective AML compliance program to attain an improved international ranking for Pakistan’s financial sector. 

She stated that SECP expects financial institutions to implement robust compliance programs geared in line with the specific risks present in the respective sectors.

Such initiatives support the development of effective domestic infrastructure and complement SECP’s efforts to strengthen AML/CFT regime.

The training aimed to inculcate awareness of the need for a well-designed and effective AML/CFT compliance function within the asset management industry.

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