February 21, 2024

SECP Launches Crackdown on Illegal Lending Apps in Pakistan

Lending Apps

SECP Launches Crackdown on Illegal Lending Apps in Pakistan

ISLAMABAD, Dec, 6,203: The Securities and Exchange Commission of Pakistan (SECP) has intensified its efforts to curb the proliferation of illegal lending apps in the country, according to an official statement released by the commission.

Emphasizing a dedicated focus on addressing complaints related to lending apps, the SECP revealed that it has collaborated with key entities such as Google, the Pakistan Telecommunication Authority (PTA), and the Federal Investigation Agency (FIA) to take down these unauthorized lending platforms.

The statement highlighted the enhancement of non-banking norms for online lending, showcasing the regulatory body’s commitment to creating a more secure financial environment. In a bid to raise awareness about investor rights, the SECP initiated a program named “Jum Ponji.”

One significant achievement outlined in the announcement is the introduction of a rapid monitoring system for business processes in the stock market. Additionally, the approval of a central gateway portal has been a pivotal step in streamlining registration processes for new companies.

The SECP disclosed that the autonomous registration system contributed to a notable increase in the number of registered companies, reaching a total of 196,805.

The non-banking sector experienced substantial growth, with a remarkable 35.9% expansion. Revenue in this sector surged by 34%, attributed to policy reforms in the insurance sector.

Earlier, the SECP issued a public warning against engaging in transactions with unapproved lending apps, specifically naming “Moneybox” and “Moneyclub.” These apps pose potential harm to borrowers and lack the necessary regulatory approval. The SECP urges the public to exercise caution and refrain from conducting any financial transactions with these unauthorized platforms.