| Case ID |
d5732d60-5c62-486d-83a5-b02c125e1e40 |
| Body |
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| Case Number |
Appeal No. 5 of 2022 |
| Decision Date |
Aug 25, 2023 |
| Hearing Date |
May 25, 2023 |
| Decision |
The Appellate Bench dismissed the appeal filed by Messrs Hamza Farhad Securities (Pvt.) Ltd. against the penalty imposed for non-compliance with the Securities and Exchange Commission of Pakistan (Anti-Money Laundering and Countering Financing of Terrorism) Regulations, 2018. The Bench upheld that the Appellant had failed to adhere to mandatory regulatory requirements and had neglected to implement policies that had been in effect since 2012. The severity of money laundering as a serious crime necessitated strict adherence to the laws, and the Appellant's excuses were not sufficient to warrant leniency. Therefore, the previous order imposing a penalty of Rs. 150,000 was maintained. |
| Summary |
In the landmark case of Messrs Hamza Farhad Securities (Pvt.) Ltd. vs. Securities and Exchange Commission of Pakistan, the Appellate Bench addressed critical issues concerning compliance with anti-money laundering regulations. The case highlighted the obligations of securities brokers to adhere to established laws aimed at combating money laundering and financing of terrorism. The Appellant argued that changes to regulations in 2019 hindered their compliance efforts, but the Commission countered that anti-money laundering policies had been in place since 2012. The Bench emphasized the need for vigilance and strict adherence to mandatory regulations, ultimately dismissing the appeal and upholding the penalty. This decision reinforces the importance of regulatory compliance within the financial sector and signifies the Commission's commitment to enforcing anti-money laundering laws effectively. |
| Court |
Securities and Exchange Commission of Pakistan
|
| Entities Involved |
Securities and Exchange Commission of Pakistan,
Pakistan Stock Exchange
|
| Judges |
Akif Saeed,
Abdul Rehman Warraich
|
| Lawyers |
Khalid Irfan Mehmood Butt
|
| Petitioners |
Messrs Hamza Farhad Securities (Pvt.) Ltd.
|
| Respondents |
DIRECTOR/HOD ADJ-I
|
| Citations |
2023 SLD 2174,
2023 CLD 1450
|
| Other Citations |
Not available
|
| Laws Involved |
Securities and Exchange Commission of Pakistan Act, 1997,
Securities and Exchange Commission of Pakistan (Anti-Money Laundering and Countering Financing of Terrorism) Regulations, 2018
|
| Sections |
40-A,
33,
15(3),
4(a),
18(c),
6(3)(a),
6(3)(c),
6(4),
7(1)(b)
|