SECP strengthens AML framework

ISLAMABAD:

The Securities and Exchange Commission of Pakistan (SECP) has proposed major amendments to the Anti-money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing (AML/CFT/CPF) Regulations, 2020 to strengthen anti-money laundering safeguards while enabling fully digital onboarding of investors, introducing IBAN-based verification, mandatory use of verified bank accounts/e-wallets and multi-biometric authentication.

Under the proposed framework, the International Bank Account Number (IBAN) verification through SECP-notified entities, including the National Clearing Company of Pakistan Limited (NCCPL) via Raast, will be accepted as a valid proof of identity, subject to compliance with all AML requirements. Investors will be required to transact only through IBAN-verified bank accounts or e-wallets, improving traceability and reducing risks of unauthorised transactions.

The amendments also introduce a multi-biometric verification system, including facial recognition, aligned with systems of NADRA.