The Securities and Exchange Commission of Pakistan (SECP) today issued a strong warning to companies regarding the submission of their Ultimate Beneficial Ownership (UBO) information via Form 19 by the April 30 deadline, cautioning that non-compliance could lead to severe legal action along with hefty financial penalties of up to PKR 10 million for companies and up to PKR 1 million for directors.
UBO declaration identifies individuals who genuinely own or control a company, even if their names are not explicitly listed among shareholders or directors. This disclosure is a mandatory requirement under the Companies Act and plays a crucial role in enhancing transparency in corporate governance.
According to the regulatory body, providing beneficial ownership details is a fundamental pillar of the country’s Anti-Money Laundering (AML) framework. Companies are mandated to provide this critical data through Form 19, which can be easily completed via the Commission’s online system, to be submitted alongside their annual returns.
All entities are requested to complete their Form 19 applications promptly, as the compliance deadline is April 30. Failure to adhere to this deadline will result in legal proceedings being initiated against non-compliant companies. Furthermore, responsible officers and company directors could face fines of up to PKR 1 million, while the company itself may incur potential penalties of up to PKR 10 million.