ISLAMABAD: The facial recognition has been made mandatory for the sale and purchase of foreign currencies. This will be in addition to other methods of verification of the customers.
The State Bank of Pakistan today directed all exchange companies to adopt facial recognition for customer verification. The new requirement will operate alongside existing thumb and fingerprint scans. The central bank aims to strengthen security and transparency in the foreign exchange market. It also intends to reduce identity-related risks through a more comprehensive biometric system.
According to an official circular, the Ministry of Interior and Narcotics Control issued the directive to incorporate facial recognition into all Nadra-based verification services.
New Policy to Take Effect in January 2026
The SBP confirmed that the new rule will take effect on January 1, 2026. The announcement gives companies sufficient time to prepare their systems for the upcoming change. The central bank has advised firms to adopt the required administrative and technical measures. It also urged timely compliance to avoid disruptions in foreign exchange operations. Officials noted that the phased approach will allow firms to upgrade equipment and train staff.
Exchange Companies Already Using Thumbprint Verification
Officials from exchange firms said they already use Nadra’s real-time biometric system. They verify customer thumbprints and fingerprints before processing any transaction. The SBP mandates this step to ensure transparency and prevent misuse. Companies must also maintain CCTV footage for six months. This footage supports audit processes and strengthens oversight mechanisms. The combination of existing requirements and the new system aims to create a more reliable verification procedure.
Facial Recognition to Enhance Security Measures
The addition of facial recognition will introduce a uniform identification system across the currency market. The SBP believes the new layer of verification will reduce identity fraud. It expects the measure to prevent impersonation and fraudulent activity. Moreover, the system will help firms detect unusual customer behavior during transactions. Authorities also hope the upgrade will reinforce public trust in regulated exchange operations.
Industry representatives said the requirement signals a broader digital transformation in financial monitoring. They added that the policy may encourage other sectors to adopt advanced biometric tools. The SBP noted that the initiative aligns with global standards for secure financial transactions.
