ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has proposed amendments to Anti Money Laundering and Countering Financing of Terrorism Regulations, 2018 as recommended by FATF.
The SECP on Wednesday said that the amendments had been proposed to further strengthen SECP’s AML/CFT regime.
The proposed amendments elaborate on the Risk Based Approach requiring regulated persons (RPs) including; securities brokers, futures brokers, insurers, Takaful operators, non-banking finance companies (NBFCs) and Modarabas to conduct risk assessment that is aligned with Pakistan’s latest National Risk Assessment and ensure implementation of Targeted Financial Sanctions.
The minimum information required for the purpose of KYC/CDD has been listed to make documentation requirements simple and clearer.
Moreover, the draft amendments provide more clarity on verification for Beneficial Ownership, close associates and family members of PEPs. The RPs are encouraged to use technological solutions for screening and monitoring of transactions as per best practices.
The SECP has tried to address the regulated sector’s feedback regarding gaps in the implementation of AML/CFT Framework.