Inspection of companies under AMLA: SECP enhances powers of supervision division

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has considerably enhanced the powers of the officers of its Supervision Division for monitoring and conducting inspections of companies under the Anti-Money Laundering Act, 2010.

Through an SRO 380(I)/2021 issued by the SECP, here on Saturday, the SECP has considerably enhanced the powers of the officers of the Supervision Division to exercise enforcement and penalty provisions against the companies under various SECP’s administered legislations.

The said officials of the Supervision Division would have powers of monitoring and supervision, including conducting inspections, to determine compliance with the requirements of sections 7(1), 7(3) to 7(6), and 7A to 7H of the Anti-Money Laundering Act, 2010, and any rules or regulations made thereunder and with the orders or regulations made thereunder that impose Targeted Financial Sanctions (TFS) obligations.

According to the SRO 380(I)/2021 issued by the SECP, here on Saturday, the Supervision Division can now exercise certain powers available under the Future Market Act, 2016, the Anti-Money Laundering Act, 2010, the Limited Liability Partnership Act, 2017, the Insurance Rules, 2017, the Securities and Exchange Commission of Pakistan Act 1997, the Central Depositories Companies Act, 1997, the Securities Act 2015, the Oversight Regulation for Self-Regulatory Bodies of Accountants, 2020, and the Companies Act 2017.

The SECP has issued another SRO 295(I)/2021 to give powers and functions of the Commission to the registrar concerned of the companies registration offices to approve for the conversion of a public company into a private company and vice versa.

Under the SRO 379(I)/2021 issued by the SECP, the commission has also empowered the Commissioner and officers of the Securities Market Division to in respect of Public Listed Companies (except for the companies involved in business of Insurance under the Insurance Ordinance, 2000.

The powers have also been granted to the Head of Department (Primary Market Approvals and Development Department, SMD) regarding public listed companies.

The SECP has also empowered officials of the Securities Market Division to impose penalty on companies for non-compliance of Listed Companies (Substantial Acquisition and Takeover Ordinance), 2002.

The SECP has issued SRO 282 (I)/2020, here on Saturday to delegate certain powers and functions of the Commission to the Securities Market Division.

This notification shall not affect anything done, order made, notification issued, show cause issued, circular made, proceedings commenced, penalty imposed and/or collected, sanction granted, approval made, fee directed or collected, direction given, investigation, inspection or inquiry conducted or any other action taken or done under or in pursuance of the above referred superseded or modified notifications.

Any pending proceedings related to the repealed Listed Companies (Substantial Acquisition and Takeover Ordinance), 2002, shall stand transferred to the authority delegated under this notification forthwith, who shall proceed with the matters as it stands prior to the coming into the effect of this notification.

Copyright Business Recorder, 2021