The Securities and Exchange Commission of Pakistan (SECP) has issued a new guidebook directing its regulated entities to strengthen measures against terrorist financing and other illegal financial activities.
The guidebook outlines procedures for screening existing and prospective customers, as well as beneficial owners, against relevant sanctions lists. Financial firms must assess potential matches, freeze the funds and assets of designated individuals and entities without delay, and report them to the relevant authorities within the prescribed timeframe.
The SECP has also emphasised regular screening, clear internal procedures, proper record-keeping, staff training and effective compliance systems. It has encouraged regulated entities to review their existing policies and strengthen safeguards in line with the guidance.
The initiative follows awareness sessions conducted by the SECP in collaboration with the National Counter Terrorism Authority (NACTA) to improve understanding of targeted financial sanctions requirements among regulated entities.
The guidebook supports Pakistan’s broader framework for anti-money laundering, countering the financing of terrorism and preventing the financing of proliferation. These measures aim to reduce the risk of financial services being misused for illegal activities.
The commission clarified that the guidebook is intended as a practical reference and does not replace existing laws, regulations or other regulatory requirements. The SECP expects the guidance to improve compliance and strengthen financial safeguards across the sectors under its supervision.