SECP issues guidebook to strengthen compliance with targeted financial sanctions

The Securities and Exchange Commission of Pakistan (SECP) has released a guidance document on Targeted Financial Sanctions, according to a statement issued on Tuesday. Its aim is to tighten compliance across regulated entities and lower the risk that financial services are abused for terrorist financing or other illicit activity. The document sets out practical steps for applying sanctions rules, such as checking clients, prospective clients and beneficial owners against the relevant lists and notifications.

Under the guidance, regulated firms must review possible matches, freeze funds and assets held by designated persons without delay, and report those actions within set timelines. Beyond that, the guidebook covers internal procedures, routine screening, record-keeping, employee training and monitoring controls. It follows awareness sessions SECP held with the National Counter Terrorism Authority (NACTA) for entities under its jurisdiction, and it should be used together with existing laws, rules and notifications since it does not replace them.

The regulator has asked firms to take another look at their present compliance setup and bolster protection against financial offences. According to SECP, the initiative seeks to encourage uniform sanctions compliance in every regulated sector, cut exposure to illicit money flows and reinforce defences against terrorist and proliferation financing.