SECP sets up Corporate Intelligence Unit to catch Ponzi schemes and unlicensed lenders early

The Securities and Exchange Commission of Pakistan (SECP) has approved a Corporate Intelligence Unit (CIU) to find companies running Ponzi or pyramid schemes, taking deposits or lending money without a licence, before investors lose their savings. Business Recorder reported the decision from an SECP statement on Wednesday, 14 October.

What the unit will look for

The CIU will target registered companies suspected of:

• running Ponzi or pyramid schemes;
• taking deposits or lending without the licence the law requires;
• doing business beyond the objects they were registered for.

Instead of waiting for complaints, it will read publicly available information, including news reports, social media posts and digital adverts, and track patterns that repeat across several sources.

What happens to a lead

Verified leads go to the relevant SECP department for an inquiry or enforcement action. SECP said it may also share information with the Federal Investigation Agency, the National Cyber Crime Investigation Agency, the State Bank of Pakistan and the National Accountability Bureau.

The unit sits in the Chairman's Secretariat under Section 20 of the SECP Act, 1997. It will be headed by a director or additional director with two officers. Chairman Dr Kabir Sidhu said it would strengthen risk-based surveillance by turning open-source information into verified regulatory leads.

What it means for you

Schemes that promise fixed monthly profits, "double your money" returns or loans through unregistered apps are still being advertised on social media. The new unit does not change what you should do before you hand over money:

1. Check that the company is registered and licensed for that business. Registration alone does not allow a company to take deposits or lend.
2. Be wary of guaranteed returns well above bank rates. The State Bank's policy rate is a useful reference point, and our national savings calculator shows what government-backed schemes actually pay.
3. Never share your CNIC, bank PIN or OTP with an app or agent you have not verified.

SECP has not yet said whether members of the public can send tips directly to the CIU. Complaints can still be filed through SECP's existing complaint service.