ISLAMABAD, October 25 (INP-WealthPK): In order to curb the menace of money laundering and terror financing from the channels of the non-banking financial sector, the Securities and Exchange Commission of Pakistan has stressed the need for adopting compliance procedures against anti-money laundering (AML) and counter-financing terrorism (CFT).
In a statement, Sadia Khan, the SECP commissioner, said that “terror-financing and money laundering is carried from all channels available to the counterfeiters. Be they documented channels or undocumented ones. Non-banking financial companies (NBFCs) are similarly vulnerable to being used by the criminal elements for illegal purposes.”
“It is therefore important that these companies and the whole non-banking financial ecosystem integrate themselves in a compliance network that works to ensure the transparency of the flow of money,” she said.
She appreciated the efforts of the industry to improve its capabilities for safeguarding the sector against the risk of money laundering, fraud, and terrorism. “SECP is doing its best to help the NBFCs in evolving a system of compliance. Various reforms and legislative measures have been introduced to rationalize the legislative requirements and refine the regulatory processes.”
However, she continued, to make Pakistan a top destination for international investments, the financial industry needed to evolve and implement an effective AML compliance program to attain an improved international ranking for Pakistan’s financial sector.
“SECP expects that financial institutions will implement a robust compliance program geared in line with the specific risks present in the respective sectors,” she said. “Initiatives on part of the NBFCs will support the development of an effective domestic transparency infrastructure, and add to the SECP’s efforts to strengthen AML/CFT regime,” she continued.
