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Illegal lending apps: SECP collaborating with Google to curb frauds

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  • Policy prevents  listing of such apps, imposes strict requirements.
  • Call agents required to utilise registered numbers, recorded lines.
  • SECP mandates cooling period, bars access to personal data.

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has said that it is proactively engaged with Google to counter the proliferation of illegal lending apps, The News reported Thursday. 

The search engine has already removed 84 illegal lending apps from its Play Store and has introduced a Personal Loan App Policy for Pakistan, which is effective from May 31, 2023. 

Pakistan is the sixth country in the world, after India, Indonesia, the Philippines, Nigeria and Kenya, where Google has introduced additional requirements for digital lending Apps.

The SECP announced on Wednesday its commitment to continuously reviewing and reforming policies to foster the development of capital and financial markets. 

It promotes ease of business through technology, enhances financial inclusion, reduces entry barriers, and enforces laws transparently to protect people’s rights. 

The policy incorporates measures to prevent the listing of such apps and imposes strict requirements regarding access to consumers’ personal data.

Notably, in December 2022, the SECP implemented borrower protection requirements for digital lending non-banking financial companies (NBFCs). 

These requirements include the transparent disclosure of fees and loan terms to customers before disbursement.

The SECP prohibits access to personal data, enforces a mandatory 24-hour cooling-off period for loans, and restricts digital lending NBFCs to a single app. 

Call agents are required to utilise registered numbers and recorded lines.

However, lenders and agents must adhere to ethical and legal standards prohibiting unfair practices and harassment. 

The SECP maintains a robust enforcement system for ensuring compliance. The commission follows a two-tier process for digital lending companies. 

The first tier involves obtaining an NBFC license, which entails conducting due diligence, evaluating sponsors and directors, and appointing an independent director. 

The second tier includes app approval based on the CSAF auditors’ certificate, which ensures the security of data and apps by assessing disclosure requirements.

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Latest News

Over Pakistan, Rain and Snowfall Are Expected Over the Next Three Days

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As a succession of westerly winds sweep into the upper areas of Pakistan, rain is expected to fall during the following three days.

The Meteorological Department forecasts snowfall in mountainous regions and rainfall in Khyber Pakhtunkhwa, Kashmir, and Gilgit-Baltistan. There will be rain in Balochistan and the Punjabi plains, including Islamabad and Rawalpindi.

In addition, Khyber Pakhtunkhwa, Gilgit-Baltistan, Kashmir, Upper Punjab, Islamabad, and Northeastern Balochistan are scheduled to see strong winds, thunderstorms, and partly overcast weather during the course of the next day.

Since last month, there has been mild to severe haze in some portions of the country’s upper regions. The capital of Punjab, Lahore, as well as cities like Multan and Sialkot, are among the areas most severely impacted by dense fog.

Other regions of the nation will see dry weather in the interim. It is anticipated that most of Punjab will see morning smog and fog, which will eventually dissipate by nightfall.

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Business

Dar chairs the CCOP meeting; Blue World’s bid offer of Rs.10 billion is rejected.

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The Foreign Minister/Deputy Prime Minister chaired the Cabinet Committee on Privatization meeting.

Other committee members who attended the conference included the Federal Secretaries of several Divisions, the Ministers of Finance and Revenue, Industry and Food, Commerce, Power, and Privatization.

The CCOP took the PC Board’s recommendation into consideration and suggested that Blue World’s bid of 10 billion rupees for the sale of 60% of PIACL’s shares be rejected. The bid was rejected by the CCOP, who chose to follow the PC Board’s advice.

The government’s determination to sell out PIACL through government-to-government or privatization was reaffirmed by the CCOP.

The CCOP was pleased with the Aviation Division’s evaluation of PIACL’s sound financial standing.

Additionally, the CCOP established a committee, chaired by the Minister of State for Finance, to assess potential transaction possibilities for the privatization of the Roosevelt Hotel and the appropriate modes of adoption in light of existing legal rules.

Prior to its subsequent meeting, the CCOP also ordered that all difficulties be resolved and an agreement for the selling of services to an international hotel be concluded.

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Latest News

Combating Terrorism: Twelve Terrorists Destroyed in Separate Operations by Security Forces

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Eleven terrorists and Kharijis were killed in two separate intelligence-based operations in Balochistan’s Miran Shah District and North Waziristan. One of the victims was Sana Alias Baru, a high-value target.

In the vicinity of Miran Shah in North Waziristan, security forces successfully fought the Khwarij, leading to the death of eight and injury of six.

The general region of Balgatar, Kech District, Balochistan was earlier the scene of an Intelligence-Based Operation that resulted in the deaths of four terrorists, one of them was a high-value target.

Authorities in Kech District were actively seeking Baru, who had a pivotal role in recruiting members of the so-called Majeed Brigade, particularly suicide bombers.

Among the terrorists’ possessions were weapons and ammo.

In order to eradicate any lingering terrorists in the vicinity, a sanitation operation is currently under progress.

With unwavering resolve, the Pakistani security forces will eradicate the terrorist threat from the nation.

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