Rs10m penalty on compliance failure
The Securities and Exchange Commission of Pakistan (SECP) has given final warning to registered companies to disclose their beneficial owners or risk a penalty of up to Rs10 million.
The company regulator said companies which have not yet submitted Beneficial Ownership Declaration (BOD) on Form 45, should do so at the earliest, as the SECP would be concluding the ongoing adjudication proceedings.
“Every company is required by law to obtain information of its ultimate beneficial owners (UBOs) and file a declaration to this effect with SECP,” it said. This is aligned with international practices, designed to improve standards of transparency in ownership and control structure of corporate entities, it added.
The SECP says it has issued periodic reminders to registered companies concerning their obligation to comply with this provision of law and also carried out extensive awareness campaign through print and social media. It has introduced a mechanism for online submission of Form 45.
“It is important to note that failure to file the requisite Form 45 may result in imposition of penalty up to Rs10 million, and therefore, SECP has issued final announcement to companies to comply with this requirement, before conclusion of the adjudication proceedings,” it said.