The Securities and Exchange Commission of Pakistan (SECP) has issued revised and more elaborative Anti Money Laundering and Counter Financial Terrorism (AML/CFT) Guidelines for Non-Profit Organizations (NPOs). The new guidelines explicitly highlights the consequences of money laundering, terrorist financing, predicate crimes and other abuses on the NPO sector.
The AML/CFT guidelines for NPOs, firstly issued in September 2018 aimed at facilitating Section 42 companies with compliance with AML/CFT regulations 2018. The amended version would provide NPO sector an improved understanding of risks of terrorist financing including transnational TF risk. It also explained some key concepts of TF. These guidelines also include major findings of Pakistan’s National Inherent Risk Assessment on money laundering and terrorism financing.
The revised Guidelines have elaborated terrorist financing process including directions, sources and channels of TF; and updated the criteria for assessment of vulnerable or high-risk NPOs.