The Securities and Exchange Commission of Pakistan has issued Notification ref S. R. O. 1170 (I)/2018 dated October 1, 2018
The attached notification introduces amendments to the “Securities and Exchange Commission Act, 1997” so as to strengthen the controls over transactions between entities for identification and restriction of “money laundering and terrorism”. These amendments slightly improves the language of the Act, but mainly focuses on the following to meet the requirements of FATF:
- Identification of natural person (operating through the legal persons e.g companies, trusts etc)
- Getting, recording and updating information of such natural person and exercising “Enhanced Due Diligence (EDD)” , such record should be maintained for 5 years.
- Counter measures against high risk countries as identified by FATF or Federal Govt
- Applying high measures of screening while hiring employees