ISLAMABAD – On the advice of the State Bank of Pakistan FinancialMonitoring Unit (FMU), SECP has constituted regulations for financialentities to fight terrorism financing and money laundering which includescustomer due diligence and ancillary recording keeping which come under itsregulatory purview.
In this regard, the apex regulator has published draft Securities andExchange Commission Anti-Money Laundering and Countering Financing ofTerrorism (AML/CFT) Regulations, 2018 on Monday.
The SECP draft regulations said “Foreign PEPs means individuals who are orhave been entrusted with prominent public functions by a foreign country,for example, heads of State or of government, senior politicians, seniorgovernment, judicial or military officials, senior executives ofstate-owned corporations, important political party officials. DomesticPEPs mean individuals who are or have been entrusted domestically withprominent public functions, for example, Heads of State or of government,senior politicians, senior government, judicial or military officials,senior executives of state-owned corporations, important political partyofficials.”
It added,” Persons who are or have been entrusted with a prominent functionby an international organization means members of senior management, i.e.directors, deputy directors and members of the board or equivalentfunctions.”
According to the draft regulations for foreign PEPs, financial entitieshave been directed to carry out enhanced due diligence in conformity withregulation and following other requirements of these regulations.