Legal Case Summary

Case Details
Case ID 26a3091d-fc9a-4e8d-a840-e95ab7de94d6
Body View case body.
Case Number Appeal No.43 of 2019
Decision Date Aug 29, 2023
Hearing Date May 18, 2023
Decision The Appellate Bench of the Securities and Exchange Commission of Pakistan reviewed Appeal No.43 of 2019 filed by Darson Securities (Private) Limited against the initial penalty imposed by the Commission. After careful consideration of the appellant's arguments and the efforts made to rectify non-compliances with the Anti Money Laundering and Countering Financing of Terrorism Regulations, 2018, the Bench determined that while the appellant failed to fully adhere to mandatory requirements, their proactive steps to comply warranted a reduction in penalties. Consequently, the penalty imposed on Darson Securities was reduced from Rs.250,000 to Rs.150,000. This decision underscores the Commission's commitment to enforcing regulatory standards while recognizing genuine efforts towards compliance.
Summary In Appeal No.43 of 2019, Darson Securities (Private) Limited challenged a penalty imposed by the Securities and Exchange Commission of Pakistan (SECP) under the SECP Act and Anti Money Laundering and Countering Financing of Terrorism Regulations, 2018. The case, decided on August 29, 2023, involved sections 3, 4(a), 13.6(2) of the 2018 Regulations and sections 40-A and 33 of the SECP Act, XLII of 1997. The hearing took place on May 18, 2023, before Judges Akif Saeed and Abdul Rehman Warraich. Darson Securities, represented by Malik Dilawayz Ahmed, appealed the original penalty of Rs.250,000 imposed for non-compliance with mandatory AML policies. The respondent, represented by Hammad Javed and Muhammad Faisal, maintained that the violations warranted the penalty. The Bench acknowledged the seriousness of money laundering offenses and the necessity for strict adherence to AML laws. However, recognizing the appellant's efforts to rectify compliance issues, the Bench reduced the penalty to Rs.150,000. This case highlights the SECP's enforcement of regulatory compliance while allowing for leniency in cases where entities demonstrate genuine intent to comply. Key legal aspects include the interpretation of regulatory requirements and the balance between strict enforcement and corrective measures. The decision reinforces the importance of maintaining robust AML frameworks within financial institutions and underscores the SECP's role in upholding financial integrity in Pakistan's securities market.
Court
Entities Involved Securities and Exchange Commission of Pakistan, DARSON SECURITIES (PVT.) LIMITED, COMMISSIONER SMD, SECP
Judges Akif Saeed, Chairman/Commissioner, Abdul Rehman Warraich, Commissioner
Lawyers Malik Dilawayz Ahmed, Hammad Javed, Additional Director, Adjudication-I, Muhammad Faisal, Assistant Director, Adjudication-I
Petitioners DARSON SECURITIES (PVT.) LIMITED
Respondents COMMISSIONER SMD, SECP
Citations 2024 SLD 4250 = 2024 CLD 721
Other Citations Not available
Laws Involved Securities and Exchange Commission of Pakistan (Anti Money Laundering and Countering Financing of Terrorism) Regulations, 2018, Securities and Exchange Commission of Pakistan Act, (XLII of 1997)
Sections 3, 4(a), 13.6(2), 40-A, 33