SECP introduces IBAN digital verification

Enables quick account opening; amends AML/CFT rules

ISLAMABAD:

The Securities and Exchange Commission of Pakistan (SECP) has introduced IBAN-based digital verification to enable faster and easier onboarding of customers, allowing investors to access financial services without unnecessary documentation and repeated verification requirements.

To facilitate this digital transformation, the SECP has amended the Anti-money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing (AML/CFT/CPF) Regulations, 2020, allowing regulated persons, including securities' brokers, futures brokers, insurers, takaful operators, non-bank finance companies (NBFCs) and modarabas, to verify customers using their IBAN (International Bank Account Number) details for completion of KYC (know your customer) requirements.

The amended framework recognises digital verification methods as an alternative to traditional processes, enabling quicker access to regulated financial services while maintaining regulatory safeguards. To strengthen investor protection and minimise the risk of unauthorised financial activity, all future transactions will be restricted to verified bank accounts held in the customer's own name, ensuring greater transparency and traceability. In line with the initiatives of NADRA, the amended regulations also introduce advanced biometric verification options, including facial recognition. Customer accounts linked with NADRA-blocked CNICs will be subject to immediate blocking under the revised framework.