SECP’s new UBO registry aims to curb financial crimes and boost investor confidence.
Key Takeaways:
i) Pakistan’s SECP is implementing a centralized registry of Ultimate Beneficial Owners (UBOs) to combat financial crimes.
ii) This initiative aligns with global standards set by the Financial Action Task Force (FATF) and the OECD.
iii) The UBO registry is expected to enhance Pakistan’s credibility, attract foreign investment, and improve access to international financial markets.
Islamabad, Pakistan – April 16, 2025 – In a move to bolster its financial transparency and attract foreign investment, the Securities and Exchange Commission of Pakistan (SECP) is introducing a centralized Ultimate Beneficial Ownership (UBO) Registry for the corporate sector. This initiative, announced on Tuesday, involves amendments to the Companies Regulations 2024 and is designed to align Pakistan’s Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) framework with international standards.
The SECP’s proposed amendments require companies to submit UBO information, already collected from shareholders, through the eZfile portal. This centralized data will be accessible to financial institutions, streamlining due diligence and compliance processes. The goal is to prevent financial crimes such as money laundering, terrorism financing, tax fraud, and corruption by clearly identifying the individuals who ultimately benefit from corporate activities.
The Asian Development Bank (ADB) forecasts a stable economic outlook for Pakistan, with a projected GDP growth of 2.5% in fiscal year 2025 and 3.0% in 2026.
Pakistan’s successful removal from the FATF grey list in 2022 has already enhanced its global credibility. The establishment of the UBO registry is expected to further strengthen investor confidence in the country’s financial ecosystem by reducing financial opacity and combating illicit financial flows.
The Asian Development Bank (ADB) forecasts a stable economic outlook for Pakistan, with a projected GDP growth of 2.5% in fiscal year 2025 and 3.0% in 2026. This growth is attributed to ongoing economic reforms and improved macroeconomic stability. The UBO registry is anticipated to contribute to this positive trajectory by fostering a more transparent and trustworthy business environment.
