SECP explains AML/CFT requirements

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has rescinded the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) reporting requirements prescribed vide circulars 8, 9 and 10 of 2017, as well as the direction 1 of 2017, commission said in a statement on Friday.

These AML/CFT reporting requirements have been replaced by the reporting framework prescribed under SECP’s SRO 245 (I)/2019 dated February 22, 2019, it added.

SRO 245 (I)/2019 lays down a comprehensive reporting mechanism in line with the FATF recommendations and SECP AML/CFT Regulations, 2018.

It has strengthened reporting from the regulated persons, including; securities brokers, futures brokers, insurers, takaful operators, non-banking finance companies (NBFCs) and modarabas as required under the rescind circulars.

Pursuant to the SRO, the regulated persons are required to submit annual risk and compliance assessment reports and six monthly information / data to the SECP to demonstrate adequacy and effectiveness of AML/CFT compliance framework.