2023: SECP bodies impose Rs5.3bn penalties on corporate sector

ISLAMABAD: The adjudication authorities of the Securities and Exchange Commission of Pakistan (SECP) have imposed a huge penalty of Rs5.3 billion on the corporate sector in 1383 orders during the year 2023.

According to the SECP’s annual report (2022-23) issued on Wednesday, the Adjudication Division consists of Adjudication Department-II and Adjudication Department-II. The Adjudication Department–I (dealing with listed companies and entities having additional registration or licensing requirements is primarily assigned with the adjudication function in respect of licensed entities and listed companies.

In this regard, the department comprises two wings, i.e., Licensed Entities Wing and Listed Companies Wing.

The Adjudication Department–II (dealing with unlisted companies and the Registry functions) is primarily assigned the adjudication function in respect of unlisted companies including section 42 companies, and limited liability partnerships (LLPs).

The SECP has issued 83 orders against the companies which committed different violation of the anti-money laundering laws during 2022-23.

During the current period, the Commission took proportionate, dissuasive, and effective enforcement actions to uphold the laws it administers. These measures led to corrective measures, significantly enhancing compliance within the corporate sector with the relevant laws.

Furthermore, 83 orders addressing AML violations by the regulated entities; resulted in penalties of Rs10.609 million for the year. The improvements made by the regulated entities in their systems and controls to comply with AML/ CFT regulations resulted in a reduction in the number of instances of violations, and accordingly, proportionate penalties have been imposed considering the ‘riskiness’ of violations, the SECP said.

Copyright Business Recorder, 2023