Pakistan is moving to meet a key condition set by the International Monetary Fund by tightening oversight of corporate ownership and cracking down on anonymous companies, regulators said.
The Securities and Exchange Commission of Pakistan has launched a drive to eliminate benami, or unnamed, companies by requiring firms to disclose their ultimate beneficial owners (UBOs). The regulator has issued a deadline of April 30 for all companies to submit accurate ownership information.
Under the directive, companies must provide details of their true owners — individuals who ultimately control or benefit from the company — even if their names do not appear among shareholders or directors. The SECP said the information must be filed through “Form 19” along with annual returns or submitted via its online system.
Officials warned that failure to comply could result in strict penalties. Companies that do not submit the required UBO information by the deadline may face fines of up to PKR 10 million, while directors and responsible officers could be fined up to PKR 1 million.
The SECP said disclosure of ultimate beneficial ownership is mandatory under the Companies Act and is critical for improving corporate governance transparency. It added that the requirement is also a key component of Pakistan’s anti-money laundering framework and part of broader efforts to align with international financial standards.
Authorities say the move underscores Pakistan’s commitment to meeting IMF conditions as it seeks to stabilize its economy and strengthen regulatory compliance.
Comments
See what people are discussing