SECP issues TFS guidebook to curb misuse of financial services

ISLAMABAD (Staff Report): The Securities and Exchange Commission of Pakistan (SECP) has issued a Guidebook on Targeted Financial Sanctions (TFS) for its regulated entities to prevent misuse of financial services.

The guidebook provides practical steps to meet TFS obligations, including screening customers and beneficial owners against sanctions lists, assessing potential matches, immediately freezing funds and assets of designated persons, and timely reporting to authorities.

It also stresses clear internal procedures, regular screening, record-keeping, staff awareness and strong compliance controls. SECP has urged regulated entities to use it to review and strengthen existing systems.

The initiative follows TFS awareness sessions conducted by SECP in collaboration with NACTA to support implementation of Pakistan’s Anti-Money Laundering and Countering Financing of Terrorism framework.

SECP said the guidebook is a practical reference and does not replace existing laws. The move aims to ensure consistent compliance and protect the integrity of Pakistan’s financial system.