The Securities and Exchange Commission of Pakistan (SECP) has issued a guidebook to help financial firms prevent terrorist financing and stop financial services from being used for illegal activities.

The guidebook sets out the steps regulated entities should follow to comply with targeted financial sanctions requirements. These include checking customers and beneficial owners against sanctions lists, investigating possible matches and freezing the funds and assets of designated individuals and organizations without delay.

Financial firms must also report relevant cases to the authorities within the required time and maintain proper records of their compliance activities.

The SECP has urged regulated entities to review their existing procedures, conduct regular screenings, train staff and strengthen internal controls.

The guidebook follows awareness sessions organized by the SECP in collaboration with the National Counter Terrorism Authority (NACTA) to explain targeted financial sanctions requirements.

The initiative supports Pakistan’s framework for preventing money laundering, terrorist financing and the financing of proliferation.

The SECP said the guidebook serves as a practical reference for regulated entities but does not replace existing laws, regulations or regulatory directives.

The commission aims to improve compliance across the financial sectors it oversees and reduce the risk of financial services being exploited for illegal purposes.