S. R. O. 557(I)/2018, Islamabad, the 26th April, 2018

ecurities and Exchange Commission Anti Money Laundering and Countering Financing of Terrorism Regulations, 2018 Government of Pakistan Securities and Exchange Commission of Pakistan Islamabad, the 26th April, 2018 NOTIFICATION S. R. O. 557(I)/2018. Whereas the Financial Monitoring Unit established under section 6 of the Anti Money Laundering Act, 2010 in exercise of its powers conferred under clause (i) of subsection (4) of section 6 has recommended Securities and Exchange Commission of Pakistan to frame regulations for the reporting entities in the context of combating money laundering and financing of terrorism, including customer due diligence and ancillary record keeping that fall within the regulatory ambit of Securities and Exchange Commission of Pakistan. Now therefore, the Securities and Exchange Commission of Pakistan in exercise of the powers conferred under section under section 40 read with clause (w) of subsection (4) of section 20 thereof, is pleased to issue draft Securities and Exchange Commission Anti Money Laundering and Countering Financing of Terrorism (AML/CFT) Regulations, 2018 for the information of all the persons likely to be affected thereby and notice is hereby given that comments, if any, received within a period of thirty days shall be taken into consideration. CHAPTER I PRELIMINARY 1. Short Title and Commencement 1.1. These regulations shall be called the Securities and Exchange Commission Anti Money Laundering and Countering Financing of Terrorism Regulations, 2018. 1.2. These shall come into force at once. 2. Definitions.- 2.1 In these Regulations, unless there is anything repugnant in the subject or context, (a) "AML Act" means Anti Money Laundering Act, 2010 as amended from time to time; (b) "AML/CFT" means Anti-Money Laundering and Countering Financing of Terrorism; (c) "Beneficial owner" in relation to a customer of a Financial Institution means, the natural person(s) who ultimately own(s) or controls a customer or the person on whose behalf a transaction is being conducted and includes the person(s) who exercise(s) ultimate effective control over a person or a legal arrangement; (d) the term beneficiary depends on the…