SECP guidebook safeguards against misuse of financial services
ISLAMABAD
Stronger checks by financial institutions can help prevent terrorist financing and other illicit activity, while protecting the integrity of Pakistan’s financial system.
To support these safeguards, the Securities and Exchange Commission of Pakistan (SECP) has issued a Guidebook on Targeted Financial Sanctions (TFS) for its regulated entities.
The guidebook explains, in practical terms, the steps regulated entities should take to meet their obligations under applicable TFS requirements. These include screening customers, prospective customers and beneficial owners against relevant sanctions lists and notifications; assessing potential matches; freezing the funds and assets of designated persons and entities without delay; and reporting to the relevant authorities within the required time.
It also highlights the need for clear internal procedures, regular screening, proper record-keeping, staff awareness and effective compliance controls. SECP encourages regulated entities to use the guidebook to review and strengthen their existing arrangements.
The guidebook follows a series of TFS awareness sessions for SECP-regulated entities, conducted by SECP in collaboration with the National Counter Terrorism Authority (NACTA). The sessions and guidebook support stronger understanding and implementation of Pakistan’s Anti-Money Laundering, Countering Financing of Terrorism and Proliferation Financing (AML/CFT/PF) framework.
The guidebook is intended as a practical reference and should be read alongside applicable laws, regulations, directives and notifications. It does not replace any existing statutory or regulatory obligations.
Through this initiative, SECP aims to promote consistent TFS compliance across its regulated sectors, reduce the risk of financial services being misused for illicit purposes, and strengthen safeguards against terrorist financing and proliferation financing. The initiative reflects SECP’s continued commitment to the integrity and resilience of Pakistan’s financial system.
