The Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Telecommunication Authority (PTA) have agreed to sign a Memorandum of Understanding (MoU) to establish a joint mechanism for monitoring and reporting illegal loan apps that are scamming people with high-interest rates and blackmailing tactics.
The decision was taken in a meeting between the SECP Chairman Akif Saeed and the PTA Chairman Major General (Retd) Hafeez Ur Rehman, where they discussed various areas of mutual interest and cooperation.
The SECP chairman informed the PTA chairman about the SECP framework for digital lending apps, which requires data localization, confidentiality and security measures, and certification by cyber security auditors. He also said that the SECP publishes a whitelist on its website to verify the legal status of digital lending apps operating in Pakistan.
The PTA chairman appreciated the SECP’s efforts and said that the PTA’s role is to block illegal apps when they are identified by the SECP or reported by the consumers through the PTA’s Complaint Management System.
He also said that the PTA contacts the respective AppStores to get these fraudulent apps removed from their platforms. The two regulators agreed to launch a joint awareness campaign to educate the public about the risks of illegal digital lending apps, which have increased in number and intensity in recent years.
They also expressed their commitment to work with the Federal Investigation Agency (FIA) to combat illegal and fraudulent apps. The move comes after a tragic suicide case in Rawalpindi last week, where a person took his own life after being harassed by online loan apps.
According to the PTA, 59 apps were reported by the SECP and on the PTA’s complaint management system, out of which 43 illegal apps were promptly blocked by the PTA. For the remaining 16 apps, the SECP has been requested to provide further details.