Regulator asks NBFCs to respect money laundering laws
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) stressed the need to cultivate a sustainable and resilient culture of compliance with anti-money laundering and combating the financing of terrorism (AML/CFT) regulations within the non-bank financial sector.
Speaking at a training programme arranged by the Mutual Funds Association of Pakistan (Mufap), a trade body of asset management companies, SECP Commissioner Sadia Khan highlighted the critical role of non-bank financial companies (NBFCs) in preventing the use of financial systems by criminal elements.
She said the industry needed to implement an effective AML compliance programme to “attain an improved international ranking for Pakistan’s financial sector” and make the country a “chosen destination for international investments”.
“The SECP expects financial institutions to implement robust compliance programmes geared in line with the specific risks present in the respective sectors,” she said, adding that such initiatives supported the development of effective domestic infrastructure and complemented SECP’s efforts to strengthen the AML/CFT regime.
Ms Khan emphasised that the SECP had introduced various regulatory reforms to rationalise the legislative requirements and refined the regulatory processes. She also appreciated the industry’s effort to improve its capabilities for safeguarding the sector against the risk of money laundering, fraud and terrorism.
The session was attended by compliance professionals and practitioners of asset management companies. The training was aimed at raising awareness about the need for a well-designed and effective AML/CFT compliance function within the asset management industry.
Published in Dawn, October 21st, 2022