SECP seeks freezing of funds of terror suspects, groups

KARACHI: The Securities & Exchange Commission of Pakistan (SECP) on Thursday directed all institutions to immediately freeze funds and other financial resources of individuals and entities declared terrorists by the UN Security Council.

The commission has sent a copy of the Foreign Affairs Ministry’s directives to all the three stock exchanges, Central Depository Committee (CDC), National Clearing Company of Pakistan Limited (NCCPL) and the National Commodities Exchange Limited (NCEL) to take necessary action and comply with the updated Gazette of Pakistan Statutory Notification, SECP said in a statement.

The fresh directive is a sequel to the directives issued by the State Bank of Pakistan to banks and development finance institutions to cooperate with the law-enforcement agencies through timely supply of information related to suspicious transactions to the domestic law-enforcement agencies.

The statutory regulatory order, commonly known as SRO, directs freezing of funds and other resources of individuals and entities included in the UN 1267 Committee’s Consolidated List, which was modified by the Al-Qaeda and Taliban Sanctions Committee of the UN Security Council on March 25, said the statement.

The UN Security Council has obliged all the states to freeze funds and other financial assets, or economic resources, including funds derived from the property owned, or controlled, to impose travel restrictions and arms embargo on individuals and entities included in the Consolidated List.

The consolidated list is available at the Al-Qaeda and Taliban Sanctions Committeeís website at www.un.org/sc/committees/1267/consolist.shtml.

The local bourse attracted investment from across the world, said a member director of the Karachi Stock Exchange, adding that foreign fund managers, individuals and entities of different origins had their interests and exposures in the local bourse, but there may be some suspicious elements among them.

Any stock exchange in the world can be used for creating economic interest, assets and even for transfer of funds, he said, adding that these directives would have no impact on the market.

A currency exchange dealer feared transfer of terror financing under the cover of workersí remittances to the city.

The federal government has passed the order that the individuals and entities, reflecting the updates in the Consolidated List, will be subject to travel restrictions and arms embargo and their bank accounts, funds and financial resources, including to those used for the provision of Internet hosting or related services, used to support Al-Qaeda, Taliban and other individuals, groups, undertakings and entities associated with them will stand frozen with effect from the date of implementation of the instructions issued by the central bank or any other federal or provincial authority, said the statement.

Analysts, however, say that none of the terror suspects or groups included on the UN list now operate under these names. Therefore, tracing and freezing of their funds remain an uphill task.

HIGHLIGHTS

Around 1,000 individuals and groups have been included in the UN list. Some of the key banned Pakistan-origin groups are:

• Al-Akhtar Trust International

• Al-Rashid Trust

• Harkat-ul-Mujahideen

• Harkat-ul-Ansar

• Jaish-e-Mohammad

• Lashkar-e-Taiba

• Lashkar-e-Jhangvi

• Rabita Trust

Source: http://www.thenews.com.pk/daily_detail.asp?id=234408