SECP Launches New Anti-Fraud System

In practice, the Securities and Exchange Commission of Pakistan (SECP) has approved the establishment of a Corporate Intelligence Unit (CIU) to identify firms suspected of running Ponzi or pyramid schemes, taking deposits or lending without licenses, or operating beyond their approved business objectives.

Key points

• The unit is being established under Section 20 of the SECP Act, 1997, within the chairman's secretariat.
• The unit will monitor publicly available information, including news reports, social media and digital, to detect potential violations before complaints are received.
• Kabir remarked the unit would strengthen risk-based surveillance by turning publicly available information into verified regulatory leads.
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• The CIU will additionally track recurring patterns and connect information from multiple public sources to assist the commission focus regulatory scrutiny on emerging risks.

For context, the unit will monitor publicly available information, including news reports, social media and digital, to detect potential violations before complaints are received. Verified leads will be referred to relevant SECP departments for investigation or enforcement action.

Where appropriate, information may additionally be shared with other agencies, including the Federal Investigation Agency (FIA), National Cyber Crime Investigation Agency (NCCIA), State Bank of Pakistan and National Accountability Bureau (NAB). Scammers Are Targeting Old Individuals.

SECP Chairman Dr. Kabir remarked the unit would strengthen risk-based surveillance by turning publicly available information into verified regulatory leads. Early detection could enable timely intervention, improve coordination among agencies and support protect investors before losses escalate.

In practice, the CIU will additionally track recurring patterns and connect information from multiple public sources to assist the commission focus regulatory scrutiny on emerging risks.

Notably, the unit is being established under Section 20 of the SECP Act, 1997, within the chairman's secretariat. It will be headed by a director or extra director and backed by two officers. Stay Connected with ProPakistani.

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Taken together, the developments around SECP Launches New Anti point to a situation that is still moving, and the coming days should bring more clarity.