In a significant regulatory move aimed at enhancing corporate transparency and aligning with global compliance standards, the Securities and Exchange Commission of Pakistan (SECP) has proposed amendments to the Companies Regulations, 2024. The amendments are geared toward establishing a centralized Ultimate Beneficial Ownership (UBO) Registry for Pakistan’s corporate sector.
The proposed reform will require companies to formally submit UBO information—already collected from their shareholders—to SECP via the eZfile portal, alongside their routine regulatory returns and forms. This development signals a major leap in Pakistan’s efforts to improve financial transparency, prevent illicit financial flows, and reinforce investor confidence in the country’s regulatory framework.
According to SECP, the centralized UBO Registry will be accessible to financial institutions on a need-to-know basis, ensuring they can verify beneficial ownership data when conducting customer due diligence or onboarding corporate clients. This measure is especially important for regulated entities such as banks, insurance companies, and capital market participants, who are required to comply with anti-money laundering (AML) and counter-financing of terrorism (CFT) obligations.
This regulatory enhancement is rooted in Pakistan’s broader commitment to implementing international best practices as laid out by the Financial Action Task Force (FATF), Organization for Economic Cooperation and Development (OECD), and other global watchdogs. The introduction of a UBO registry is one of the key recommendations made by FATF, which encourages jurisdictions to maintain a transparent record of individuals who ultimately own or control a legal entity.
Pakistan was removed from the FATF grey list in 2022 following sustained efforts by various government bodies, including the SECP, to strengthen its AML/CFT framework. The exit from the grey list significantly improved Pakistan’s international standing and credibility in the eyes of foreign investors, international financial institutions, and global regulatory networks.
By moving toward a centralized and digitalized UBO system, SECP aims to build on that momentum and eliminate loopholes that can be exploited for financial crimes such as tax evasion, terror financing, and money laundering. The Registry will ensure that accurate, up-to-date, and comprehensive information on beneficial ownership is consistently maintained, easily accessible to authorized stakeholders, and protected through secure digital protocols.
This development is expected to increase investor confidence, reduce operational risk for financial institutions, and boost Pakistan’s attractiveness as a destination for foreign direct investment (FDI). It will also improve ease of doing business by streamlining regulatory compliance processes for companies operating within the country.
Commenting on the initiative, regulatory experts have noted that such centralized systems not only strengthen internal financial governance but also enhance interoperability with global systems, a key requirement for attracting international partnerships and accessing foreign markets. Furthermore, this measure aligns with Pakistan’s commitments under the United Nations Convention Against Corruption and the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes.
The SECP’s proposed UBO Registry underscores the regulator’s proactive approach to financial oversight and modernization. It marks another step forward in creating a more accountable, transparent, and investor-friendly business environment in Pakistan. As the consultation process for the regulatory amendments moves forward, corporate entities are advised to prepare for compliance by updating their internal ownership records and ensuring alignment with the new reporting standards.