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If you plan to buy or sell foreign currency next year, get ready for a stricter verification process. The State Bank of Pakistan (SBP) has issued a new directive today. Starting January 1, 2026, all Exchange Companies (ECs) must implement facial recognition technology for customer verification.
This move aims to strengthen security and transparency within the currency market.
Currently, exchange companies rely solely on thumb and fingerprint verification through NADRA to process transactions. However, the new mandate introduces a “dual-modality” biometric system. This means companies will soon require both a fingerprint scan and a facial scan to verify your identity.
The Ministry of Interior and Narcotics Control instructed NADRA to integrate facial recognition into its existing verification services. Consequently, the SBP adopted these instructions to ensure a uniform and consistent identification system across the financial sector.
The central bank’s primary goal is enhanced security. By adding facial recognition, the SBP intends to significantly reduce the risk of identity fraud in foreign exchange transactions.
According to the recent circular, these measures fall under “Chapter 7” of the “Regulatory Framework for Exchange Companies”. This chapter makes biometric verification mandatory for all customers. The addition of facial scans expands these existing protocols to create a more robust defence against illegal activities.
Exchange companies have a short window to prepare. The SBP has advised all ECs to take immediate administrative and technical steps to meet the January 1 deadline.
Industry officials confirm that companies already conduct real-time fingerprint verifications via NADRA. Furthermore, ECs currently retain six months of CCTV footage as part of their compliance obligations. This new directive simply adds another layer of digital security to their daily operations.
