SECP shuts down 7 illegal loan apps in collaboration with FIA, PTA

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has intensified crackdown on illegal loan apps and closed seven illegal apps in collaboration with the Federal Investigation Agency (FIA), and the Pakistan Telecommunication Authority (PTA).

Briefing the media on Tuesday, the SECP officials informed that as part of the SECP’s crackdown on illegal loan apps, it has been observed that some operators have started launching their illegal loan apps through Android Package Kit (APK) files, by using alternative channels such as websites, WhatsApp, etc instead of uploading them on Google and Apple Play stores.

The general public is cautioned that illegal apps available through channels other than the App Store pose serious risks to the users, including fraud, misuse of personal information, blackmailing, harassment, etc. The SECP, therefore, warns the general public not to download illegal apps from any website or link shared through any other source.

As part of SECP’s surveillance activities, seven illegal apps marketed on various websites have been identified and action has been initiated in collaboration with the Federal Investigation Agency (FIA), and the Pakistan Telecommunica-tion Authority (PTA).

The shift in illicit app distribution technique is the consequence of actions against illegal lending apps initiated by the SECP, in partnership with Google, FIA, and PTA, which resulted in the removal of 120 illegal apps from the Google and Apple App stores.

“The SECP not only tightened its regulatory framework for licenced Non-Banking Finance Companies (NBFCs) but also initiated effective steps with the relevant authorities to shut down unauthorized and illegal loan apps,” the officials maintained.

The officials said that the SECP has issued an all-encompassing set of requirements for Non-Banking Financial Companies (NBFCs) offering digital personal loans via mobile applications. The requirements set a maximum limit for the annual profit rate and total cost that can be charged by a Nano lender to the borrower.

As a result of SECP’s efforts and continuous engagement, Google has introduced Pakistan’s Personal Loan App Policy, according to which Google only allows SECP-approved Personal Loan Apps for placement on its Google Play Store.

Through efficient surveillance and complaints received through the SECP’s dedicated complaint site, the regulator had identified 120 unlawfully running personal loan apps and reported them to Google, Apple and the PTA for prompt blocking and referred these to the FIA for further action in accordance with the Prevention of Electronic Crimes Act of 2016. The SECP regularly checks the Google Play Store and the Apple App Store for the presence of any illegal apps.

An updated list of illegal apps has been placed on SECP’s website for public information and the general public is advised to download only SECP’s approved personal loan apps, available on SECP’s website.

Copyright Business Recorder, 2023