Legal Case Summary

Case Details
Case ID d5732d60-5c62-486d-83a5-b02c125e1e40
Body View case body.
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)