SECP introduces amendments to anti-money laundering laws

The Securities and Exchange Commission of Pakistan (SECP) has introduced amendments to the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Regulations 2020. The notified amendments aim to enhance the scope of regulations to effectively combat financial crimes, control money laundering and combat terror financing while ensuring the integrity of its financial system. The amendments are the outcome of the National Risk Assessment 2023, in which SECP conducted a self-assessment of its regulatory framework against the criteria used in the FATF Assessment Methodology for assessing technical compliance of its AML/CFT regulatory framework. The amendments, introduced post-stakeholder consultation, demonstrate SECP’s commitment to enhancing the country’s regulatory framework and aligning it with international best practices. The amendments primarily focus on expanding the regulatory framework to encompass measures specifically tailored for Customer Due Diligence (CDD) requirements related to bank account opening of mentally disordered persons.