ISLAMABAD: In a major crackdown on financial opacity, the Securities and Exchange Commission of Pakistan (SECP) has operationalized a mandatory Digital Registry to track the actual individuals who own or control corporate entities. This new system forces companies to disclose their “Ultimate Beneficial Owners” (UBOs), ending the era of anonymous shareholding.
The SECP management confirmed that every company registered in Pakistan must now submit detailed information about individuals who hold at least a 25% stake or exercise significant control, even through indirect means. This digital shift replaces the manual reporting system, which often allowed influential owners to hide behind layers of shell companies or proxy directors.
This initiative aligns with the stringent requirements of the Financial Action Task Force (FATF) and the latest directives from the International Monetary Fund (IMF). By centralizing this data, Pakistan’s law enforcement agencies, including the Federal Investigation Agency (FIA) and the FBR, can now access real-time ownership records during financial investigations.
SECP Chairman highlighted that the registry would improve Pakistan’s “Ease of Doing Business” ranking by fostering a transparent investment climate. He warned that companies failing to update their UBO records within the stipulated deadline will face heavy penalties and potential de-registration. The commission has integrated the registry with the NADRA database to verify the CNICs of all beneficial owners instantly, leaving no room for forged identities.