KARACHI: The Securities and Exchange Commission of Pakistan (SECP) and the National Accountability Bureau (NAB) have agreed to strengthen institutional collaboration to combat illegal deposit-taking activities and protect the public from financial fraud, stated a press release on Wednesday.
The two organisations will sign a Memorandum of Understanding (MoU) to enhance cooperation, information sharing and coordinated enforcement against illegal deposit-taking schemes. The agreement was reached during a high-level meeting between NAB Chairman Lt-Gen (r) Nazir Ahmed Butt and SECP Chairman Dr Kabir Ahmed Sidhu at the SECP Head Office.
The proposed MoU will establish a structured framework for intelligence sharing, coordinated investigations, and joint enforcement actions to address illegal financial activities and eliminate regulatory and jurisdictional gaps.
During the meeting, Dr Sidhu highlighted that illegal deposit-taking schemes have emerged as a serious threat to the public, often causing substantial financial losses to unsuspecting citizens through false promises of high returns. He noted that such activities undermine confidence in the financial system and adversely affect legitimate businesses and financial institutions.
The SECP chairman emphasised the need for strict and timely action against entities involved in unlawful deposit-taking activities. The meeting agreed that enhanced cooperation between the SECP and NAB would facilitate swift action against offenders, strengthen enforcement efforts and provide timely relief to affected members of the public.
The NAB chairman reaffirmed the bureau’s commitment to working closely with the SECP to combat financial crimes and safeguard public interest. He stated that stronger coordination between the two institutions would improve the effectiveness of enforcement, enhance accountability and serve as a strong deterrent to illegal deposit-taking and other fraudulent financial practices.
The SECP reiterated that the mere registration of a company does not authorise it to solicit or accept deposits from the general public. Under Section 84 of the Companies Act, 2017, deposit-taking by companies, other than banking companies and entities specifically licensed by the SECP, is strictly prohibited and unlawful.
