SECP proposes AML amendments

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed amendments to the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Regulations, 2020, aiming to enhance the scope of regulations to combat proliferation financing and strengthen the country's financial integrity framework, a statement said on Tuesday.

The proposed amendments focus on expanding the regulatory framework to encompass measures specifically tailored for combating proliferation financing and diminishing the frequency from existing five years to three years to treat an account as dormant.

SECP further aims to enhance the effectiveness of the regulations by adding provisions, among others relating to reliance on third parties for CDD (customer due diligence) and requirements applicable on foreign branches and subsidiaries of regulated persons.

Proliferation financing, which refers to the financial support provided for the proliferation of weapons of mass destruction (WMD) or their delivery systems, has emerged as a significant global concern. Recognising the need for a comprehensive approach to address the issue, SECP has taken steps to strengthen the existing AML/CFT Regulations. SECP invited stakeholders to provide their comments and suggestions on proposed amendments within the next 14 days.