The Securities and Exchange Commission of Pakistan (SECP) has introduced IBAN-based digital verification. This way, financial institutions can verify customers through their bank account details and reduce paperwork during account opening.
The regulator has amended the AML/CFT/CPF Regulations, 2020, enabling regulated entities—including securities brokers, futures brokers, insurers, takaful operators, non-banking finance companies (NBFCs), and Modarabas—to complete Know Your Customer (KYC) checks using customers’ IBAN information.
According to the SECP, the move is aimed at accelerating digital onboarding, improving access to financial services, supporting ease of doing business, and modernizing Pakistan’s financial sector through technology.
The revised framework recognizes digital verification as an alternative to conventional KYC procedures, enabling customers to open accounts more quickly while maintaining regulatory safeguards.
To strengthen investor protection, financial transactions will only be allowed through bank accounts verified in the customer’s own name. The SECP said this measure will improve transparency and help prevent unauthorized financial activity.
The amendments also introduce advanced biometric verification methods, including facial recognition, in line with initiatives undertaken by the National Database and Registration Authority (NADRA). Customer accounts linked to blocked or impounded CNICs will be suspended immediately under the updated rules.
In addition, digital logs have been recognized as valid records for anti-money laundering and counter-terrorist financing compliance and data retention requirements. The prescribed forms have also been updated to align with the Companies Regulations, 2024.
The amended AML/CFT/CPF Regulations, 2020 have been published on SECP’s website.
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