SECP points up best practices to ensure AML/CFT abidance

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Monday stressed on sharing best global practices, legislative framework, technological enhancements, and streamlining of procedures to apply national anti-money laundering and countering financing of terrorism (AML/CFT) measures and develop effective risk assessment/compliance framework.

These views were expressed during the course of a workshop, organised by the Commission, on AML/CFT with a theme of “implementation of risk-based approach within financial institutions”.

SECP said after Karachi, this workshop was second in the series and was attended by about 150 participants from sectors regulated by the SECP, i.e., securities market, commodities market, insurance/ takaful sector and non-banking financial instructions.

The objective of the workshop, the commission said, was to bring a higher level of awareness among financial institutions on SECP AML/CFT regulations, 2018, and regulatory expectations.

Speaking to the participants, Khalida Habib, executive director, SECP, gave a detailed presentation on the AML/CFT legal framework for financial institutions in Pakistan, the monitoring process of the Financial Action Task Force (FATF) and Pakistan’s mutual evaluation by Asia Pacific Group-against FATF 40 Recommendations.

Habib also highlighted the measures taken by the SECP in the form of regulations and guidance and discussed the way forward, the statement said.

Arifuddin, member of Joint Inspection regime, said it was highly commendable to see such contribution in the area of money laundering and terror financing. Expressing an interest in holding these seminars on a regular basis, he proposed that such interaction with stakeholders should be a regular feature.

Muhammad Ali, joint director SECP, in his concluding remarks, shared his experience of the onsite inspections and identified gaps in implementation of the AML/CFT regime. The workshop was followed by an interactive session with the participants, which provided them a platform for sharing of experiences and encouraged feedback.

In the question-and-answer session officers from the SECP as well as members of the joint inspection regime (for brokers) answered participants’ queries. The participants also gave their valuable suggestions on the SECP’s initiatives in the area of AML/CFT.