Our Correspondent<\/p>\n
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has reported M.R. Securities, the Lahore-based stockbroker involved in financial fraud, to international securities regulators through the International Organization of Securities Commissions (IOSCO). It has also reported this brokerage house to the Financial Monitoring Unit to initiate action under the Anti Money Laundering Act, 2010.
\nThere is a trend among Pakistani financial fraudsters to run abroad, assuming that they will not be on the radar of the securities\u2019 regulator of the host jurisdiction. The owners of defaulting brokerage houses such as Ace Securities, Stock Street, and M.R. Securities are all believed to be hiding abroad.
\nChairman SECP, Zafar Hijazi said that the SECP\u2019s reporting measures will help discourage securities\u2019 fraud and tighten accountability for the culprits. The SECP will continue to report to international regulators any stockbroker found involved in securities fraud in Pakistan, he added.
\nThe SECP is a member of the IOSCO, the international body that brings together the world’s securities regulators and sets standards for the securities sector. Its members regulate more than 95% of the world’s securities markets in more than 115 jurisdictions. The SECP is approaching the IOSCO for such information sharing on financial fraud under a multilateral memorandum of understanding to which SECP is a signatory.
\nEarlier in a joint meeting, the SECP and the State Bank of Pakistan (SBP) voiced their concern over financial scams and frauds, including illegal deposit taking. The two regulators resolved to pay special attention to such fraudulent activities by adopting a coordinated approach along with the cooperation of law enforcement agencies.
\nThe SECP is also working on developing a mechanism for collecting market intelligence about potential financial scams in their incubation. The SECP shall develop this market intelligence mechanism in close cooperation with the SBP. This intelligence mechanism shall enable the regulators to act more proactively to minimize losses to unsuspecting investors.
\nThis market intelligence mechanism for detecting scams will be complemented by additional security measures against fraudsters after their cases have been detected and concluded.
\nUnder these additional security measures, those involved in financial scams once will find it difficult to access financial services sector again without raising red flags, be it opening a bank account or taking an insurance policy. This is in line with international practices where individuals and companies found guilty of financial crime remain on the radar of the financial sector service providers.<\/p>\n","protected":false},"excerpt":{"rendered":"
Our Correspondent ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has reported M.R. Securities, the Lahore-based stockbroker involved in financial fraud, to international securities regulators through the International Organization of Securities Commissions (IOSCO). It has also reported this brokerage house to the Financial Monitoring Unit to initiate action under the Anti Money Laundering Act, […]<\/p>\n","protected":false},"author":1,"featured_media":12926,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-13718","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n