Pakistan Sets April 30 Deadline for Companies to Disclose Ultimate Beneficial Owners under IMF Conditions

The Government of Pakistan has taken a significant step to fulfill a key condition set by the International Monetary Fund (IMF) by mandating all registered companies to disclose details of their ultimate beneficial owners (UBOs) by April 30.

According to the Securities and Exchange Commission of Pakistan (SECP), it is now legally mandatory for companies to provide information about their actual owners or individuals who exercise control over the company, regardless of whether they are listed as directors or shareholders.

The SECP has instructed companies to submit this information through Form 19 on its online portal. The move is aimed at eliminating anonymous or benami ownership structures and enhancing transparency in the corporate sector.

Officials stated that this requirement is part of Pakistan’s commitment to strengthening its anti-money laundering framework and ensuring compliance with international financial standards.

Strict penalties have been announced for non-compliance. Companies failing to submit the required information by the deadline may face fines of up to PKR 10 million. Additionally, company directors and responsible officers could be fined up to PKR 1 million.

The SECP has urged all registered companies to complete their filings promptly to avoid legal action and financial penalties, emphasizing that the initiative is crucial for improving corporate governance and financial transparency in Pakistan.