Form 16 SECP Ultimate Beneficial Owner
Form 16 SECP: Notice to Members for Providing Ultimate Beneficial Owner (UBO) Information in Pakistan
In an era of heightened global scrutiny over financial transparency, Pakistan is taking robust steps to combat money laundering and terrorism financing. A key instrument in this endeavor is Form 16 – Notice to Members for Providing Particulars of Ultimate Beneficial Owners (UBOs). This official notice, though not filed with the Securities and Exchange Commission of Pakistan (SECP) directly, is a crucial internal compliance measure mandated for companies to identify the natural persons who ultimately own or control them.
What is Form 16?
Form 16 is a statutory notice issued by a company to its own members (shareholders), formally requesting them to disclose comprehensive particulars of their Ultimate Beneficial Ownership (UBO). This requirement is integral to Pakistan’s commitment to international anti-money laundering (AML) and counter-terrorism financing (CTF) efforts, aimed at fostering greater corporate transparency.
It’s important to clarify that Form 16 is an internal communication from the company to its shareholders, not a document submitted to the SECP. Its purpose is to gather the necessary data from shareholders, which the company then records in its internal Register of Ultimate Beneficial Owners (Form 17), a document that is subsequently filed with the SECP.
Legal Basis for Form 16
The mandate for companies to issue Form 16 is firmly established within Pakistan’s corporate law framework, reflecting the country’s adherence to international standards for combating financial crimes.
Form 16 is governed by: