Securities and Exchange Commission of Pakistan commences Anti-Money Laundering and Counter Financing Terrorism regime in Capital markets – Alfalah Securities Limited

Karachi: The Securities and Exchange Commission of Pakistan (SECP) has introduced a regulatory framework for the implementation of Antimony laundering (AML) and Counter-Financing terrorism (CFT) regime in the Capital markets of the country.

According to Alfalah Securities Limited, the guidelines would include customer identification, customer profiling, ongoing due diligence, risk assessment, enhanced due diligence for high risk customers, requirements relating to politically exposed persons and staff training/screening etc. It will require the brokers to ensure identification of actual beneficiary of an account, conduct risk assessment, monitor transactions executed and detect any unusual activity that does not correspond to the profile and expected trading pattern of the customer. Alfalah Securities Limited believes the new risk assessment procedures bodes well for the brokerage industry as these regulations would keep a check on the misappropriations by the investors and their trading patterns, thereby reducing the chances of defaults and losses for the brokerage industry.