The State Bank of Pakistan (SBP) has issued a new set of regulatory guidelines for exchange companies, introducing a stricter framework for buying and selling foreign currency across the country.
The updated rules, communicated through an official circular, will take effect on January 1 and aim to enhance transparency, curb illegal currency trading, and strengthen documentation within the foreign exchange market.
Under the new system, all customer identity verifications for foreign currency transactions will be conducted through NADRA. Exchange companies will be required to authenticate customer biometrics through the Ministry of Interior’s verification gateway, ensuring that each transaction is tied to a verified, traceable identity. The SBP emphasised that this step is designed to prevent fraudulent transactions, money laundering, and the use of fake or stolen identification documents.
In addition to biometric checks, money changers must install high-resolution surveillance cameras capable of capturing clear facial images of customers at the time of transaction.
These cameras will be connected to the NADRA system for real-time verification, enhancing the security of the identity-matching process and reducing the risk of misreporting or impersonation.
The Exchange Companies Association of Pakistan (ECAP) said the new biometric system will be directly linked to the Ministry of Interior’s database.
ECAP General Secretary confirmed that all exchange companies have been instructed to comply before the January 1 deadline and that the association has already written to NADRA to ensure the smooth rollout of the new requirements.
Industry representatives believe the move will bring more documentation and transparency to Pakistan’s currency market, though some money changers have expressed concerns about the cost of new equipment and integration systems. Nevertheless, the SBP maintains that the reforms are essential for stabilising the market and aligning Pakistan’s foreign exchange practices with global compliance standards.
