THE Securities and Exchange Commission of Pakistan (SECP) has intensified efforts to combat money laundering and terrorism financing, with noose being tightened around those involved in these heinous crimes in the country. “SECP has already signed a memorandum of understanding (MoU) with National Counter Terrorism Authority (NACTA) to work together for creating awareness about terror financing and money laundering in financial institutions as well as general public and undertake joint initiatives in this regard,” SECP Executive Director Khalida Habib told a one-day workshop held here in the federal capital to raise awareness about an effective anti-money laundering/combating financing of terrorism (AML/CFT) compliance framework within its regulated entities, including insurance companies, stock brokers, commodity brokers and non-banking financial companies. She said the commission has already notified Anti-Money Laundering and Combating Financing of Terrorism Regulations, 2018, which are fully compliant with the Financial Action Task Force (FATF) recommendations. In the light of the recommendations made by the FATF, the commission has intensified its efforts to combat terrorism financing and money laundering by asking all the companies to comply with the Anti-Money Laundering Act, 2010, she added. The executive director said the SECP has provided a single set of regulations for all the securities brokers, insurance companies, non-banking financial companies with an aim to harmonise the AML/CFT regime. “The latest regulations focus at high-risk areas and taking a risk-based approach towards combating money laundering and financing of terrorism,” she said. “In order to ensure that criminals are not able to hide their identity through use of complex ownership structure of companies, partnerships, trusts or other similar forms, the financial institutions are required to identify the ultimate beneficial owner before offering their services to them,” she added. SECP Commissioner Shauzab Ali said despite some major challenges, the commission has made significant policy efforts and implemented practical steps to stop money laundering and terrorism financing in the country. “The SECP has applied know-your-customer regulations to stock exchanges, securities brokers and dealers, trusts, and other non-banking financial institutions. SECP has also created an Anti-Money Laundering Unit and established an Anti-Money Laundering Consultative Group to include self-regulatory bodies such as the stock exchanges and industry groups in this effort,” he said. The commissioner said the SECP is pursuing the policy of improving the capture of regulatory and law enforcement information and its sharing between relevant agencies, which serves to further document the economy and support AML/CFT efforts. “Pakistan is also vigorously pursuing various channels of international cooperation to combat money laundering and terror financing, including cooperative investigations and active participation in the APG and other regional initiatives,” he added. Published in Daily Times, October 23rd 2018.