New Digital Verification System Introduced
The Securities and Exchange Commission of Pakistan has introduced IBAN-based digital verification to make customer onboarding faster and easier across regulated financial sectors.
The new framework will allow investors to access financial services without unnecessary paperwork and repeated verification requirements. The move is aimed at improving digital access, reducing delays and supporting ease of doing business in Pakistan’s financial market.
To enable the change, SECP has amended the AML, CFT and CPF Regulations, 2020. The amendments allow regulated entities to verify customers through their IBAN details for completing Know Your Customer requirements.
The new system will apply to securities brokers, futures brokers, insurers, Takaful operators, non-banking finance companies and Modarabas.
Faster Access With Stronger Safeguards
SECP said the initiative is part of its wider plan to modernize Pakistan’s financial ecosystem through technology.
The amended framework recognizes digital verification methods as an alternative to traditional customer verification processes. This will help investors open accounts and access regulated financial services more quickly.
At the same time, SECP said strong regulatory safeguards will remain in place. The new process is designed to make verification faster while ensuring security, transparency and compliance.
To protect investors and reduce the risk of unauthorized activity, all future transactions will be restricted to verified bank accounts held in the customer’s own name.
This measure is expected to improve traceability across the market and reduce the chances of misuse.
Biometric Verification and CNIC Controls Added
The revised regulations also include advanced biometric verification options in line with NADRA’s digital initiatives.
These options include facial recognition for customer verification.
Under the new framework, customer accounts linked with NADRA-blocked or impounded CNICs will be blocked immediately.
SECP has also recognized digital logs as valid records for AML and CFT compliance and data retention purposes. This will help regulated entities maintain proper digital records under the updated rules.
The prescribed forms have also been revised in line with the Companies Regulations, 2024.
SECP said the amended AML, CFT and CPF Regulations, 2020 are available on its official website.
The development is being seen as an important step toward digital financial inclusion, safer investor onboarding and a more efficient regulated financial services sector in Pakistan.
