Financial Updates

The blog "FINANCIAL UPDATES" consists on exclusive economic and commerce news about across the world particularly Pakistan economy

Thursday, August 30, 2018

SECP enhances efforts to fight against terror financing

 The Securities and Exchange Commission of Pakistan (SECP) has intensified efforts to combat terror financing and money laundering, a statement said on Thursday.

On the directive of Chairman Shaukat Hussain, the SECP has issued Circular No 16 of 2018, with a view to maintaining a register of ultimate beneficial ownership.

This circular has been issued to all companies, making them responsible to comply with Section 453 of the Companies Act
Th circular has directed all the companies having legal persons as their members/shareholders to obtain and maintain up-to-date information relating to their ultimate beneficial owners, i.e. natural persons who ultimately own or control the company through direct or indirect ownership of not less than 10 percent shares, voting rights, ownership or controlling interest in that company.
Companies shall obtain the ultimate beneficial ownership information from their members, and also ensure to maintain and update this information in a register of beneficial ownership. 
 Theinformation is required to be obtained and maintained irrespective of the number of levels of ownership pattern, until the natural person exercising ultimate ownership or control and lying at the end of the ownership chain, is revealed.
The minimum fields of information required to be by the companies have been specified through the circular. In case no natural persons are identified after having exhausted all possible means, or there is any doubt that the persons identified are the beneficial owners, there shall be entered in the register of beneficial ownership the names of the natural person(s) who hold the position of senior managing official(s) of the company.

This circular has been issued in pursuance of making Pakistan compliant with 40 recommendations, which serve as international standards for combating ML/TF. Pakistan is a member of APG-a FATF Styled Regional Body (FSRB) and is required to adopt FATF standards as per membership obligations, and also to comply with the UN resolution.

Wednesday, August 15, 2018

49 bank accounts under radar of FBR

Federal Federal Board of Revenue (FBR) is set to tighten noose around 49 million bank depositors in order to find out new taxpayers.
Sources told that FBR detected 49 million banks accounts which are being used for business activities but they their account holders are still out of tax net. 
It is worth mentioning that at present total return filers are only 1.5 million out of country’s population of 207 million people.
The FBR sources said that the federal tax authority was also considering to approach the Supreme Court of Pakistan for vacating stays in such cases.
The FBR’s move was result of latest probe into fake bank accounts that was initiated by federal investigation agency.
The sources said that the bank and financial institutions are paying withholding tax on the basis of deduction but they are not allowing access and providing details of their account holders.
The deposit back of banking industry has increased massively by 9.01 percent to staggering Rs13.06 trillion by June 30, 2018 as compared with Rs11.98 trillion on the same day a year ago.