Pakistan: Insurers urged to ensure overseas units meet AML/CFT rules
Source: Asia Insurance Review | Aug 2018
The Securities and Exchange Commission of Pakistan (SECP) has made it mandatory for insurers, takaful operators, securities brokers, commodities brokers and other nonbank financial companies to pay special attention to their overseas branches or subsidiaries located in countries which do not or insufficiently comply with Financial Action Task Force recommendations.
Under the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) regulations 2018, these entities shall apply their AML/CFT policies to all of their units outside Pakistan to the extent that laws and regulations of the host country permit.
Where the AML/CFT requirements in the host country or jurisdiction differ from those in Pakistan, the regulated entities shall require their overseas branches or subsidiaries to apply the higher of the two standards, to the extent that the law of the host country or jurisdiction so permits.
Where the law of the host country conflicts with the AML/CFT requirements of Pakistan so that the overseas branch or subsidiary is unable fully to observe the higher standards, the regulated entity shall report this to the SECP and comply with such further directions as may be issued. A