SECP for AML/CFT compliance in non-banking financial sector

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has stressed the need to cultivate a sustainable and resilient culture of AML/CFT compliance within the non-bank financial sector.

Talking at the training programme arranged by Mutual Funds Association of Pakistan (MUFAP), SECP Commissioner Sadia Khan highlighted the critical role of Non-Banking Finance Companies (NBFCs) in preventing the use of financial systems by the criminal elements. She appreciated the effort of the industry to improve its capabilities for safeguarding the sector against the risk of money laundering, fraud, and terrorism. The session was attended by compliance professionals and practitioners of the asset management companies.

Commissioner Sadia emphasized that SECP with the support of the Government, has introduced various regulatory reforms to rationalize the legislative requirements and refined the regulatory processes. However, in order to make Pakistan the chosen destination for international investments, the industry need to implement an effective AML compliance program to attain an improved international ranking for Pakistan’s financial sector.

She said that SECP expects the financial institutions to implement robust compliance programs in line with the specific risks present in the respective sectors. Such initiatives support the development of an effective domestic infrastructure, and complement SECP’s efforts to strengthen AML/CFT Regime.

The training aimed to inculcate awareness on the need for a well-designed and effective AML/CFT compliance function within the asset management industry.

Copyright Business Recorder, 2022