8 — Pakistani Case Law

Fields are extracted from the reported citation and judgment text. Where a detail is not stated in the record, it is not shown.

Citation Name: 2026 CLD 704 SECURITIES-AND-EXCHANGE-COMMISSION-OF-PAKISTANBookmark this Case FLOAT SECURITIES PRIVATE LIMITED VS COMMISSIONER (SMD) Reglns. 4(d), 16(9)(e) & 18( c ) (ii)---Maintaining independent audit function, failure of---Effect---Appellant was a Trading Rights Entitlement Certificate holder of the Pakistan Stock Exchange (PSX) and was licensed as a securities broker with the Securities and Exchange Commission of Pakistan ('the Commission')---Appellant was penalized by the Commission for violations of provisions of Securities and Exchange Commission of Pakistan (Anti-Money Laundering and Countering Financing of Terrorism) Regulations, 2018 ('the AML and CFT Regulations 2018')---Validity---Appellant failed to establish an independent auditing system, which was essential for ensuring adherence to the AML and CFT Regulations 2018---Having an internal audit system, along with acompliance officer to enforce internal policies and procedures related to the AML and CFT Regulations 2018, was equally essential---However, in view the severity of the violations, the quantum of penalty was on the high side as the intention was not malicious, and the AML and CFT Regulations 2018 were subsequently complied with---Thus, at a nascent stage a hefty penalty might unreasonably burden the company financially and its intention had always been to ensure full compliance---Purpose of the fine was to cause a deterrent and enforce remedial action, and in the present case even if the fine was reduced, the purpose would be served---Appellate Bench reduced the amount of the penalty imposed on the appellant from Rs. 200,000 to Rs. 100,000, with the expectation that the appellant would fully comply with the requirements of the AML and CFT Regulations, 2018 in the future---Appeal was disposed accordingly. Citation Name: 2026 CLD 677 SECURITIES-AND-EXCHANGE-COMMISSION-OF-PAKISTANBookmark this Case NEXT CAPITAL LIMITED VS EXECUTIVE DIRECTOR, ADJUDICATION DEPARTMENT-I, SECP Reglns. 6(3)(a), 6(3)(c), 6(4), 6(8), 4(a) & 13(7)---Requirements of Anti-Money Laundering Regulations---Contravention by the Company---Appellant (Trading Right Entitlement Certificate holder of the Pakistan Stock Exchange and licensed as securities broker) was penalized by Securities and Exchange Commission of Pakistan ('the Commission') for contravention of provisions of Securities and Exchange Commission of Pakistan (Anti-Money Laundering and Countering Financing of Terrorism) Regulations, 2018 ('the AML Regulations, 2018')---Validity---Appellant had the responsibility to strictly adhere to the relevant requirements outlined in the AML Regulations, 2018 which were notified on June 13, 2018---Appellant had ample time to implement systems required to ensure compliance with the said AML Regulations, 2018 as the Inspection was started in 2020---Subsequent rectification actions did not absolve the appellant from the committed violations---Notably, the appellant provided the requisite information in the highlighted instances in compliance of Reglns. 6(3)(a), 6(3)(c) & 6(4) of the AML Regulations, 2018 subsequent to the inspection, but failed to provide proper evidence and justification for contravention of Reglns. 6(8), 4(a) & 13(7) of the AML Regulations, 2018---Under the circumstances, the appellant could not be exonerated from the alleged violations, however, in view of the subsequent compliance and future commitment, Appellate Bench, reduced the imposed penalty vide the impugned order from Rs. 650,000 to Rs. 325,000---Appeal was disposed of accordingly.

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Case information

Judgment text as reported