SECP and PTA collaborate to Protect the Public from Illegal Loan Apps

The Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Telecommunication Authority (PTA) have decided to collaborate and establish a joint monitoring and reporting mechanism to address the problem of illegal lending apps. The SECP Chairman, Akif Saeed, and the PTA Chairman, Major General (Retd) Hafeez Ur Rehman, held a high-level meeting to explore areas of mutual interest and foster effective cooperation between the two institutions.

Recognizing the importance of joint efforts, both regulators agreed to sign a Memorandum of Understanding (MoU) to solidify their collaboration. The MoU will serve as the foundation for future joint initiatives aimed at strengthening the regulatory framework and promptly dealing with issues related to their respective domains. Specifically, they will work together to combat illegal lending apps and establish a monitoring and reporting system for timely actions against them.

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During the meeting, Akif Saeed briefed his counterpart about SECP’s framework for digital lending apps and the role of cyber security auditors in ensuring the confidentiality and security of these apps. SECP also shared its whitelist of approved digital lending apps on its website to verify their legal status in Pakistan. Additionally, SECP is developing a cyber-security framework, and they plan to seek feedback from PTA considering the growing digitalization in the corporate and financial sectors.

PTA Chairman appreciated SECP’s robust regulatory framework for lending apps and emphasized the importance of data localization measures. Both regulators agreed to conduct a joint awareness campaign to educate the public about the risks associated with illegal digital lending apps, aiming to protect them from potential fraudulent practices.