Pakistan’s regulator establishes CIU to detect illegal schemes early
The Securities and Exchange Commission of Pakistan (SECP) has approved establishing a Corporate Intelligence Unit (CIU) to proactively identify registered companies suspected of running Ponzi or pyramid schemes, taking deposits or lending without the required licence, or operating beyond their approved objectives. According to a statement released on Wednesday, the unit will monitor publicly…
The Securities and Exchange Commission of Pakistan (SECP) has authorized the formation of a Corporate Intelligence Unit (CIU) aimed at proactively detecting registered companies engaging in illegal practices like Ponzi or pyramid schemes. According to a statement released on Wednesday, the unit will monitor public information sources such as news reports, social media, and digital ads to spot potential violations before receiving complaints.
Verified leads will be forwarded to the relevant SECP departments for inquiry or enforcement action, with information potentially shared with agencies including the Federal Investigation Agency (FIA), National Communications Commission (NCCIA), State Bank of Pakistan, and National Accountability Bureau (NAB). SECP Chairman Dr Kabir Sidhu emphasized that the CIU will bolster the Commission's early-warning capacity and support timely regulatory action, preventing further investor losses.
By tracking patterns and linking information from multiple public sources, the CIU will direct scrutiny towards emerging risks. The unit is being established under Section 20 of the SECP Act, 1997, under the SECP Chairman's Secretariat, and will be headed by a director or additional director with support from a team of two officers.
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