Teamwork between regulators, LEAs vital to combat financial crimes: SECP chief

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) Chairman, Aamir Khan, said that Synergy, collaboration and teamwork between all regulators and law enforcement agencies (LEAs) is vital to effectively combat emerging trends of financial crimes.

He was speaking at the conclusion of Workshop on Investigation of Financial Crimes arranged by Islamabad Police at the School of Investigation, Police Lines Headquarters. Aamir Khan went on to add that they possess diverse and unique skills and capabilities that can complement their efforts in fighting financial crimes.

Inspector General of Police, Islamabad Qazi Jamilur Rehman was also present.

Aamir Khan said that the advancements in technology, coupled with globalization, such as internet accessibility and increased usage of mobile phones, has enabled criminal elements to engage in collusive practices and develop more sophisticated methodologies to evade legal scrutiny and commit offences. He added that the rapid pace of advancements has made it imperative for authorities mandated to protect public interest, to develop the ability to effectively protect against these schemes.

Law enforcement agencies (LEAs) and regulators such as the SECP, share the same goal of protection of public interest. There is a dire need for them to be conjoined at the hip. In this respect, three areas merit serious consideration.

The first is effective engagement between the regulatory bodies and law enforcement agencies to develop understanding of the roles of each other. In the past there has been lack of interaction between the two, and limited awareness about the legislative domain and function of the regulators. Likewise, regulators have been unable to comprehend the mandate and approach of the law enforcement agencies.

Khan suggested improving and formalizing collaboration between law enforcement agencies and regulatory bodies. Effective and efficient investigation of financial crimes requires synergy, collaboration and teamwork between all investigation institutions. We have a classic example of this in the case of the 2008 Global Financial Crisis, where the US Government formed special task forces to collectively fight financial crimes. He suggested complementing each other's strength as regulators lack the teeth that LEAs possess, but regulators have intricate knowledge about laws, accounting practices, business transactions etc, that can be beneficial for LEAs, especially in combating white-collar financial crimes.

It is for this exact purpose that the SECP had recently approached the IG, with a request to consider allocating a senior resource for dedicated sessions to conduct training of SECP officers in the field of criminal investigations, inspections, evidence collection, handling witness statements, from the perspective of our regulated laws.

He hoped that the workshop and the training would go a long way to fostering a close cooperative relationship between the SECP and the Islamabad Police, to collaborate and engage effectively for the larger public good.

Copyright Business Recorder, 2021