Proscribed outfits Companies' officers barred from providing assistance, funding

The Securities and Exchange Commission of Pakistan (SECP) has prohibited all officers of companies from providing any assistance or funding including charity/donation to the entities and individuals contained in the list of proscribed organizations updated by National Counter Terrorism Authority (NACTA).
The SECP has issued SRO 31(I)/2018 here on Tuesday. The NACTA has notified 65 organizations/splinter outfits, as proscribed by Ministry of Interior.
According to the SECP notification, in pursuance of the Section 453 of the Companies Act, 2017 read with section 510 thereof, the SECP hereby prohibits every officer of a company from providing any assistance and funding including charity/donation to the entities and individuals listed under the consolidated list and they are advised to ensure compliance with the requirements in letter and spirit.
Under SRO 31(I)/2018, the SECP has said that the United Nations Security Council (UNSC) sanctions committee, pursuant to the Resolution 1267 (1999) and other subsequent resolutions, concerning ISIL (Daesh)/al-Qaeda and Taliban Sanctions Committees and their associated individuals, approves the addition, amendments and deletion in the consolidated list of individuals and entities subject to the sanctions covering assets freeze, travel ban and arms embargo set out in the Security Council resolutions adopted under Chapter VII of the Charter of the United Nations.
The government of Pakistan under the United Nations (Security Council) Act, 1948 gives effect to the decisions of the UNSC whenever the consolidated list maintained by the Sanctions Committee is updated. The Ministry of Foreign Affairs issues the statutory regulatory orders (SROs) to give legal cover for implementing sanction measures under the UNSC resolutions. The consolidated lists available at the UN sanctions committee's website, are regularly updated and can be accessed at following link; www.un.org/sc/committees/1267/aq_sanctions_list.shtml.
The government has already prescribed penalty up to Rs 10 million for non-compliance with sanctions regime being implemented through SROs under the UN (Security Council) Act, 1948, the SECP said.
For implementing sanction measures under United Nations Security Council Resolution 1373(2001), the Ministry of Interior issues notifications of proscribed individuals/entities pursuant to the Anti-Terrorism Act, 1997. The consolidated list under UNSC Resolution 1373 available at the National Counter Terrorism Authority's website is regularly updated and can be accessed at following link;
http://nacta.gov.pk/proscribed-organizations/.
The section 453 of the Companies Act, 2017 requires that every officer of a company shall endeavor to prevent the commission of any fraud, offences of money laundering including predicated offences as provided in the Anti-Money Laundering Act, 2010 with respect to affairs of the company and shall take adequate measures for the purpose failing which punishment of imprisonment for a term which may extend to three years and with fine which may extend to one hundred million rupees shall be imposed.
The SECP said that the obligations/prohibitions regarding proscribed entities and persons mentioned in the above list are applicable, on an ongoing basis, to proscribed/designated entities and persons or to those who are known for their association with such entities and persons, whether under the proscribed/designated name or with a different name.
In pursuance of the Section 453 of the Companies Act, 2017 read with section 510 thereof, the Securities and Exchange Commission of Pakistan hereby prohibits every officer of a company from providing any assistance and funding including charity/donation to the entities and individuals listed under the consolidated list (as mentioned above) and are advised to ensure compliance of the requirements in letter and spirit, the SECP added.