Under the updated Securities and Exchange Commission of Pakistan (Anti-Money Laundering and Countering Financing of Terrorism) Regulations, 2018 issued by the SECP, regulated persons (securities brokers, futures brokers, Insurers, Takaful operators, NBFCs/Modarabas) shall adopt counter-measures, including but not limited to, enhance due diligence proportionate to the risk, to the business relationship and transactions with their customer belonging to such countries for which this is called upon by Financial Action Task Force (FATF) and/or as notified by the federal government.
The Commission, on the advice of the federal government regarding weakness in the AML/CFT (Anti-Money Laundering and Countering Financing of Terrorism) systems of other counties, shall direct the regulated person to adopt counter-measures in accordance with these regulations with the customers belonging to such countries, the SECP said.
The regulated person shall pay particular attention to their branches and subsidiaries located in countries which do not or insufficiently comply with FATF recommendations (as determined by FATF) and ensure that their AML/ CFT policy is observed by branches and subsidiaries in those countries.
The regulated person shall apply their AML/ CFT policies to all of their branches and subsidiaries outside Pakistan to the extent that laws and regulations of the host country permit.
Where the AML/CFT requirements in the host country or jurisdiction differ from those in Pakistan, regulated person shall require their overseas branches or subsidiaries to apply the higher of the two standards, to the extent that the law of the host country or jurisdiction so permits.
Where the law of the host country conflicts with the AML/ CFT requirements of Pakistan so that the overseas branch or subsidiary is unable to fully observe the higher standards, the regulated person shall report this to the Commission and comply with such further directions as may be issued, added the SECP.