Pakistan’s regulator establishes CIU to detect illegal schemes early
- CIU to be headed by a director or an additional director and supported by a team of two officers
The Securities and Exchange Commission of Pakistan (SECP) has approved establishing a Corporate Intelligence Unit (CIU) to proactively identify registered companies suspected of running Ponzi or pyramid schemes, taking deposits or lending without the required licence, or operating beyond their approved objectives.
According to a statement released on Wednesday, the unit will monitor publicly available information, including news reports, social media, and digital advertisements, to identify potential violations before receiving complaints.
Verified leads will be referred to the relevant SECP departments for inquiry or enforcement action. Where appropriate, information may also be shared with agencies including the FIA, NCCIA, State Bank of Pakistan and NAB.
SECP said that the CIU is expected to strengthen its early-warning capacity, support timely regulatory intervention and help prevent further investor losses.
By tracking recurring patterns and linking information from multiple public sources, it will also help the Commission direct scrutiny towards emerging risks.
SECP Chairman Dr Kabir Sidhu said that the CIU will strengthen the SECP’s risk-based surveillance by converting open-source information into verified regulatory leads.
Early identification of suspicious activity can enable timely intervention, improve coordination across agencies and help protect investors before losses escalate.
The CIU is being established under Section 20 of the SECP Act, 1997, as part of the Chairman’s Secretariat. It will be headed by a director or an additional director and supported by a team of two officers.