| Case ID |
d62621ac-8bc5-4913-b2c0-677a33dd44dc |
| Body |
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| Case Number |
Appeal No.09 of 2023 |
| Decision Date |
Feb 13, 2024 |
| Hearing Date |
Jan 18, 2024 |
| Decision |
The appellate bench set aside the penalty imposed by the SECP, taking into account the mitigating factors presented by the appellant, including their efforts to comply with the regulations despite having no clients or transactions. The bench acknowledged that while the appellant was required to adhere to the law, the SECP had not sufficiently weighed the circumstances surrounding the appellant's compliance report submitted prior to the hearing. Consequently, the appeal was allowed in favor of the appellant, providing a crucial precedent for similar cases involving regulatory compliance. |
| Summary |
In the case of XPERT SECURITIES LIMITED vs. DIRECTOR/HOD (ADJUDICATION-I), the Securities and Exchange Commission of Pakistan (SECP) imposed a penalty of Rs. 60,000 on Xpert Securities for alleged non-compliance with anti-money laundering regulations. The appellant contended that they had not conducted any business transactions and had rectified all compliance issues prior to the hearing. The case highlights the importance of adherence to regulatory standards in the financial sector, even for entities with no client interactions. The appellate bench ultimately ruled in favor of the appellant, emphasizing the need for regulators to consider mitigating factors in compliance cases. Keywords: Securities Commission, Anti-Money Laundering, Regulatory Compliance, Financial Sector Regulations. |
| Court |
Securities and Exchange Commission of Pakistan
|
| Entities Involved |
Securities and Exchange Commission of Pakistan,
XPERT SECURITIES LIMITED
|
| Judges |
Akif Saeed,
Abdul Rehman Warraich
|
| Lawyers |
Shaheer Bin Tahir,
Hammad Javed,
Muhammad Akram
|
| Petitioners |
XPERT SECURITIES LIMITED
|
| Respondents |
DIRECTOR/HOD (ADJUDICATION-I), ADJUDICATION DIVISION
|
| Citations |
2024 SLD 4273,
2024 CLD 869
|
| Other Citations |
Not available
|
| Laws Involved |
Anti-Money Laundering Act, 2010,
Securities and Exchange Commission of Pakistan (Anti Money Laundering and Countering Financing of Terrorism) Regulations, 2018,
Securities and Exchange Commission of Pakistan Act, 1997
|
| Sections |
6(A)(2)(h),
5(a),
27(2)(c),
33
|