Account opening: SECP directs AMCs to carry out due diligence

Updated 22 Jan, 2023

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has directed all Asset Management Companies (AMCs) to carry out minimum due diligence for the opening of all accounts.

The SECP officials told Business Recorder here on Saturday that AMCs should conduct verification of the customer identity from Nadra as well as a screening of the customer against applicable sanctions regimes (UNSC, NACTA, etc).

In case of online account opening, verification of contact details/identity through One Time PIN (OTP) on the designated mobile number and/or email address of the Customer, as the case may be. Provided that requirements shall not be applicable in case of “Sehl” accounts, opened through BB/EMI service providers.

According to the SECP officials, AMC shall proceed with opening of account after the customer has successfully accessed the portal using the OTP. Account may be opened after due-diligence checks and satisfactory completion of the requirements as applicable on each Account.

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The opening of Sehl account shall require transfer of customer data from the platform through which customer is being on boarded while opening of Sahulat Sarmayakari accounts shall be subject to compliance with applicable legal and regulatory requirements on low risk accounts while Sarmayakari accounts shall be opened once all applicable legal and regulatory requirements for full/normal account are complied with.

Further, a customer will not be able to redeem funds from account until all required verifications are completed for that account, subject to the provisions of NBFC & NE Regulations, 2008 and applicable regulatory framework.

The SECP officials added that the digital verification to conduct online face-to-face interaction on real-time basis or digital Verification of customer’s photograph/selfie shall be mandatory at all types of account opened of all high-risk customers requiring Enhanced Due Diligence (EDD) in line with AML/CFT Regulations.

Copyright Business Recorder, 2023

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