Law: Securities and Exchange Commission of Pakistan (Anti Money Laundering and Countering Financing of Terrorism) Regulations, 2018

Section: 3,4(a),13.6(2),,/40-A,33

Law: Securities and Exchange Commission of Pakistan Act, (XLII of 1997)

Section:

Securities and Exchange Commission of Pakistan (Anti-Money Laundering and Countering Financing of Terrorism) Regulations , 2018---

----Rglns. 3, 4(a), 13 and 6(2)---Securities and Exchange Commission of Pakistan Act (XLII of 1997), Ss. 40-A and 33---Anti-money laundering policies---Regulatory requirements, non-compliance of---Effect---Appeal to the Appellate Bench of the Commission---Appellant, having being licensed with Pakistan Stock Exchange ('PSX') as a securities broker , was imposed penalty of Rs. 250,000/= by the Commission for contravention of Securities and Exchange Commission of Pakistan (Anti Money Laundering and Countering Financing of Terrorism) Regulations, 2018 ('the Regulations')---Validity---Appellant had an obligation to adhere to the relevant requirements of the Securities and Exchange Commission of Pakistan (Anti Money Laundering and Countering Financing of Terrorism) Regulations, 2018, which should have been followed by the appellant in true letter and spirit---In present case, the appellant failed to comply with the mandatory requirements and had neglected to implement mandatory policies that had been in effect since 2012---Money-laundering is a serious crime and its severity cannot be under-estimated---Regulated individuals are expected to be highly vigilant in adhering to Anti-Money Laundering laws and should not offer excuses to avoid compliance---However, record revealed that the appellant had made efforts to rectify the non-compliances and was striving to adhere to the Regulations, thus the Appellate Bench considered justified to reduce the penalty from Rs.250,000/= to Rs.150, 000/=---Appeal was disposed of accordingly.

ORDER