SBP Disapproves Opening Bank Accounts without Digital Verification

By Fizza Akbar ⏐ 3 years ago ⏐

2 min read

The State Bank of Pakistan (SBP) has issued a notice to all banks ordering them to increase their utilization of the digital portal developed by the Securities and Exchange Commission of Pakistan (SECP) for the verification of the documents that companies are submitting in an effort to open accounts in bank branches.

The State Bank of Pakistan (SBP) has declared, as indicated in a circular that was distributed to banks, that its regulated organizations, including banks and other financial institutions, should regard papers verified through the site to be certified genuine copies. In addition to this, it said that account opening requirements for physically certified businesses are no longer applicable.

The SECP rule of the bank has been sent to the SBP, and it states that the facility of physical verification is discontinued by SECP. Moving ahead, the only form of verification that will be available in digital verification.

In addition to this, it instructed all banks to verify that the system is compliant at the branch level and to assist clients, including businesses, within the bounds of the appropriate legal and regulatory framework.

Earlier, SBP and SECP had collaborated to organize significant awareness programs, which included both regional and branch levels, with the goal of drawing attention to the significance of data verification for businesses through the SECP site.

The Securities and Exchange Commission of Pakistan (SECP) has been hard at work modernizing its digital platform in order to make available the record of Limited Liability Partnerships (LLPs), form -45, data on foreign firms, and the possibility to download the specifics of transactions. If the same user of the bank accesses the record of the same firm inside the same bank’s one-hour time limit, the SECP will charge that user a one-time fee.

The Securities and Exchange Commission of Pakistan (SECP) has chosen two focus individuals to provide advice and handle difficulties in order to make things easier for banks and enterprises.

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