The Securities and Exchange Commission of Pakistan (SECP) has established a new Corporate Intelligence Unit (CIU) to identify suspected financial fraud before investors suffer losses.
The unit will monitor publicly available information, including news reports, social media platforms and digital advertisements. It aims to detect suspicious activities and help authorities respond before receiving formal complaints.
The initiative strengthens the regulator’s efforts to identify illegal financial schemes and protect investors across Pakistan.
New Unit to Monitor Suspicious Companies
The CIU will focus on registered companies suspected of running Ponzi or pyramid schemes. It will also examine businesses that accept deposits or provide loans without the required licences.
The unit will investigate potential violations involving companies operating beyond their approved business objectives. By connecting information from different public sources, it will help identify recurring patterns and emerging risks.
This approach will allow the SECP to identify warning signs earlier and direct regulatory attention towards suspicious activities.
SECP to Coordinate With Law Enforcement Agencies
The unit will review information gathered from public sources and assess potential regulatory violations. Officials will refer verified leads to the relevant SECP departments for further investigation or enforcement action.
Where necessary, the commission may also share information with other authorities. These include the Federal Investigation Agency (FIA), National Cyber Crime Investigation Agency (NCCIA), State Bank of Pakistan and National Accountability Bureau (NAB).
The coordination aims to improve information sharing and support timely action against suspected financial wrongdoing.
Initiative Aims to Protect Investors
SECP Chairman Dr Kabir Ahmed Sidhu said the unit would strengthen risk-based surveillance by converting publicly available information into verified regulatory leads. Early detection could help authorities intervene before fraudulent schemes cause greater financial damage. It could also improve oversight of companies operating in Pakistan’s regulated financial and corporate sectors.
The CIU will operate under Section 20 of the SECP Act, 1997, as part of the chairman’s secretariat. A director or additional director will lead the unit, supported by two officers.
The initiative marks a shift towards proactive monitoring, allowing the regulator to identify potential risks before investors file complaints.
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