SECP, NACTA vow to help choke off terror funding

The two institutions signed MOU to combat the deficiencies in the regime

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) and National Counter  Authority (NACTA) have resolved to jointly undertake all the necessary efforts to collaborate in combating anti-money laundering (AML)/ counter-terrorism financing (CTF).

A Memorandum of Understanding (MOU) was signed at the NACTA head office between the SECP and NACTA in this regard.  The SECP Chairman Shaukat Hussain and NACTA National Coordinator Dr Muhammad Suleman Khan signed the MOU on the occasion.

The MOU will enable both institutions to collaborate, cooperate and coordinate for effectively carrying out the respective statutory responsibilities for implementation of Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regime. It will also help to maintaining the highest level of oversight quality and minimizing duplication efforts.

Moreover, the two institutions will establish a framework for collaboration, coordination, awareness and raising and sharing of information in areas of common regulatory and supervisory interest for continuance of objectives of SECP and NACTA.

Earlier, the SECP notified the Anti-Money Laundering and Countering Financing of Terrorism Regulations 2018 on June 14 2018. The regulations consolidate AML/CFT regime for financial institutions regulated by the SECP namely, securities brokers, insurance companies, non-banking finance companies and modarabas.

These regulations are fully compliant with Financial Action Task Force Recommendations and Pakistan being a member of the Asia Pacific Group on Money Laundering is under obligation to adopt the same.

Shaukat Hussain highlighted the significance of sensitizing financial institutions and associations with charitable and non-profit objectives regarding best practices to be adopted on AML/CFT framework. He stressed that the importance of consultative group for sharing of knowledge and experiences on AML/CFT and compliance of FATF recommendations.

The SECP chairman also shed light on the shared regulatory objectives and supervisory responsibilities of the SECP and NACTA on AML/CFT. He said that SECP has been able to reach large audiences and create awareness and sensitization with respect to AML/CFT obligations through the JamaPunji programme.

He also accentuated the fact that the SECP is fully cognizant of its responsibilities under the FATF Action plan and APG mutual evaluation and is committed to taking necessary steps for proper implementation of the action plan.

NACTA National Coordinator Dr Muhammad Suleman Khan expressed his satisfaction over NACTA’s collaboration with SECP to achieve the broader national mandate of implementation of AML/CFT regime. Moreover, he also applauded the SECP’s efforts for its newly introduced measures of combating AML/CTF.