AXIS GLOBAL LIMITED vs The COMMISSIONER (SMD) Reglns — 2024 CLD 681 SECURITIES-AND-EXCHANGE-COMMISSION-OF-PAKI

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AXIS GLOBAL LIMITED VS The COMMISSIONER (SMD) Reglns. 3, 4(a), 4(d), 6(2), 9(3), 11(2), 13 and 18(c)---Securities and Exchange Commission of Pakistan Act (XLII of 1997), Ss. 40-A and 33---Anti-Money Laundering policies---Regulatory requirements, non-compliance of---Effect---Appeal to the Appellate Bench of the Commission---Appellant, being a Trading Rights Entitlement Certificate (TREC) holder of Pakistan Stock Exchange ('PSX') having been licensed as a securities broker, was imposed penalty by the Commission for contravention of Securities and Exchange Commission of Pakistan (Anti-Money Laundering and Countering Financing of Terrorism) Regulations, 2018 ('the Regulations')---Contention of the appellant was that some of the violations had been rectified prior to the hearing date---Validity---Appellant had an obligation to adhere to the relevant requirements of the Securities and Exchange Commission of Pakistan (Anti-Money Laundering and Countering Financing of Terrorism) Regulations, 2018, which should have been followed by the appellant in their true letter and spirit---Argument that some violations had been rectified prior to hearing date at first place, was an admission on the part of the appellant, and might serve as a mitigating factor only where the violations had been corrected and necessary actions taken to comply with Regulations, 2018 prior to the issuance of the impugned order---Level of compliance was taken into account by the Commission and thus penalty was imposed accordingly---Outcome of a case always depends on specific circumstances and the severity of the violations committed---In the present case, the appellant failed to comply with mandatory requirements and neglected to implement mandatory policies that had been in effect since 2016---Money laundering is a serious crime and its severity cannot be under-estimated---Regulated individuals are expected to be highly vigilant in adhering to Anti-Money Laundering laws and should not offer excuses to avoid compliance---No reason to interfere with the merits of the impugned order was made out---Appellate Bench maintained the impugned order passed by the Commissioner (SMD) Securities and Exchange Commission of Pakistan---Appeal was dismissed, in circumstances.

AXIS GLOBAL LIMITED vs The COMMISSIONER (SMD) Reglns — 2024 CLD 681 SECURITIES-AND-EXCHANGE-COMMISSION-OF-PAKISTAN

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