Regulatory Blind Spots: How SECP and FBR Governance Lapses Enabled the BCG Fraud

The dual cases HRPM-BCG20260 and HRPM-DTH20160 reveal a systemic failure in Pakistan's regulatory landscape. While the Securities & Exchange Commission of Pakistan (SECP) and the Federal Board of Revenue (FBR) were active in investigating the founder of BCG, Danish Thanvi, they remained blind to—or perhaps complicit in—the systematic internal fraud of PKR 17M occurring right under their supervision.

Key Findings

Selective Oversight: Documents show the SECP focused on 'illegitimate terminations' and regulatory raids against the founder while ignoring 161 bank documents that evidenced a massive internal siphoning of funds by a rogue executive syndicate.

Banking Failures: Despite 'unusual patterns' involving 67 fraudulent payments and credit card misuse, banking regulators failed to flag the transactions as suspicious under Anti-Money Laundering (AML) guidelines.

Procedural Lapses: The FBR's inability to reconcile ghost employee payroll fraud, despite having access to corporate filings, highlights a significant gap in digital tax and employment oversight.

Evidence & Data

HRPM archival data shows that during the period of 2025-2026, while the founder was fighting state-sponsored harassment, the internal syndicate used the chaos to change finance passwords and scrub logs. The SECP’s involvement in the case was cited by the perpetrators as a 'justification' for their takeover, showing how regulatory action can be weaponized by criminals within a company.

Legal Framework

Securities and Exchange Commission of Pakistan Act, 1997: Which mandates the protection of investors and the mitigation of corporate fraud.

AML/CFT Regulations: Which were clearly bypassed or ignored by the financial institutions involved in the 67 documented payments.

ICCPR Article 2: Requirement for states to provide an effective remedy for violations of rights, including the right to property and due process.

Recommendations

A formal inquiry into the SECP officers who handled the BCG file during the 2025-2026 period to check for collusion.

STRICT enforcement of AML reporting requirements for all corporate accounts flagged with multiple director-level 'loans' and salary manipulations.

Implementation of mandatory digital forensic audits for companies currently undergoing regulatory investigations to prevent 'log scrubbing' and evidence destruction.

Read the full case file on HRPM: Case HRPM-BCG20260.