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SECP successfully executes World Bank Anti-Money Laundering project

The Securities and Exchange Commission of Pakistan (SECP) has successfully executed World Bank Anti-Money Laundering project under the Banking Sector Technical Assistance Project Programme (BSTAPP). According to the SRO.385(I)/2010 of the SECP presented before the National Assembly on Thursday, a number of activities were undertaken in World Bank's Institutional Development Fund (IDF) Grant.

Work on compliance with second Tranche loan conditionalities of "ADB's Second Generation of Capital Market Reforms Programme" also executed at a satisfactory pace. World Bank Anti-Money Laundering project under TABS Programme was successfully executed.

The SRO.385(I)/2010 is related to the statement of accounts of the SECP certified by the auditors along with the annual report for the fiscal ended on June 30, 2009. The notification said that the World Bank under its Institutional Development Fund facility had approved a grant of 454,000 dollars for the Commission. The closing date of the grant was extended by one year to September 28, 2009.

A World Bank mission visited the Commission in March 2009 to review the progress in implementation of the grant. The mission focused on the procurement activities in pipeline and
eviewed progress on the outcomes and performance indicators. It highly appreciated the efforts under taken by the Commission for achieving the objects of the grant.

The notification said that the two local consultants were hired for Information Technology (IT) audit to examine the controls and IT governance practices currently in place at the Commission and suggest ways for their improvement. The consultants have completed their assignment and have also submitted their report.

An international consultant was appointed for raising institutional capacity for "Credit Rating Agencies." The consultant has initiated work and is expected to complete the assignment in mid September and submit his report. A local consultant has been hired for developing courses syllabus, curriculum and question bank for Institute of Capital market's (ICM) examinations/certifications. The consultant is currently closely working with team of the Commission and the Institute and is expected to relinquish the assignment by mid September 2009. IT equipment for the ICM was purchased during the year to equip it with the advanced technology. Process for purchase of equipment for various departments of the Commission has initiated and equipment is expected to be delivered by end of September 2009.

About the Second Generation of Capital Market Reforms Programme, the notification said that the Programme is an assistance package of ADB to Government of Pakistan for further capital market reforms through (i) a loan of US $400 million to Government of Pakistan and (ii) a technical assistance (TA) grant of US $1 million to the Commission to support the implementation of the programme.

The principal objectives of the programme are to (i) strengthen the enabling environment for private pension funds and other institutional investors; (ii) address policy and regulatory constraints for development of corporate bond market; (iii) increase equity market breadth and reduce its volatility; (iv) strengthen the institutional framework of the Commission (v) effective supervision of NBFIs; and (vi) strengthening the governance of securities markets, market professionals and public issuers. The TA interalia contemplates the following key activities: The establishment of a Capital Market Institute as a non-government certification institute to raise professional standards among market participants and professionals.

Copyright Business Recorder, 2010