FIA, SECP ink MoU to cooperate for securing digital financial system

Islamabad: Federal Investigation Agency (FIA) and the Securities and Exchange Commission of Pakistan (SECP) on Tuesday have agreed to cooperate to protect Pakistan’s digital financial system from cybercrime and fraud threats through the signing of a Memorandum of Understanding (MoU).

The FIA Additional Director General Ahmed Ishaque Jehangir met the SECP Chairman Akif Saeed to foster effective collaboration and identify areas of shared interest between the two entities.

Senior officials from both organizations were present.

Companies are prohibited from getting client data under the MOU, and they are also expected to adhere to ethical and regulatory guidelines.

The meeting featured fruitful debates and discussions on a number of significant topics of shared interest.

It was decided to designate focus points for illicit deposit-taking and lending Apps, build a swift communication line, and regularly share information on cases being looked into by the relevant organizations.

The Chairman SECP provided the FIA team with information on the SECP's regulatory framework for online lending apps as well as its initiatives to outlaw unfair business practices and guarantee borrowers' financial stability.

The framework also requires digital lending NBFCs to disclose fees, loan terms, installments, and charges to borrowers in a transparent manner, Akif added.

It was told in the meeting that the SECP collaborated with Google to implement the Personal Loan App Policy in Pakistan, restricting the listing of unauthorized and illicit apps. As a result, Google removed 115 illegal lending apps from its Play Store.

The Additional Director General FIA, Ahmed Ishaque Jehangir, appreciated SECP’s regulatory framework for lending apps and called for training and awareness sessions for officers on digital lending policy.

He also agreed to assist SECP in capacity building and establishing digital forensics lab facilities.

According to Akif, the framework calls for full disclosure of fees, loan terms, installments, and charges to borrowers by digital lending NBFCs.

The SECP and Google worked together to enforce Pakistan's Personal Loan App Policy, which forbade the inclusion of illegal and unlicensed apps, during the meeting. Google as a result took down 115 unlawful loan apps from the Play Store.

Ahmed Ishaque Jehangir, the Additional Director General of the FIA, praised the SECP's framework for regulating lending apps and urged for training and informational sessions for officers on the subject of digital lending policy.

He also pledged to help SECP increase its capabilities and set up a digital forensics’ lab.