No more Double Shahs: SECP establishes CIU

KARACHI (Staff Report): The Securities and Exchange Commission of Pakistan (SECP) has established a Corporate Intelligence Unit to protect citizens’ hard-earned money from financial frauds.

The unit will monitor illegal online businesses, unauthorized trading platforms and Ponzi schemes that have been fleecing the public with promises of high returns.

According to the SECP, the new unit will keep a strict watch on suspicious financial activities and ensure timely identification of schemes that put public savings at risk.

The SECP said the unit will specifically monitor Ponzi and pyramid schemes, companies taking deposits without a license, and illegal lending operations. It will track suspicious activities through social media, digital advertisements and news reports.

The regulator said early detection of fraud will help save investors from losses. The unit will convert open-source information into regulatory evidence for risk-based monitoring.

The Corporate Intelligence Unit will work directly under the supervision of the Chairman SECP.

The step has been taken after a surge in large-scale online fraud cases where citizens were looted through social media promotions of Ponzi schemes, illegal trading systems and unauthorized dollar trading. The government has vowed strict action against such activities. It is expected that the era of “Double Shahs” luring citizens with double-your-money scams is over.