The Securities and Exchange Commission of Pakistan (SECP) has introduced IBAN-based digital verification to make customer onboarding faster and simpler across the financial sector.
The new system was launched on Saturday and is designed to give investors access to financial services without unnecessary paperwork or repeated verification steps.
To enable this shift, the SECP has amended the AML/CFT/CPF Regulations, 2020.
The amendment allows Regulated Persons, including securities brokers, futures brokers, insurers, takaful operators, NBFCs and modarabas, to verify customers through their IBAN details in order to complete Know Your Customer (KYC) requirements.
The move is part of a broader SECP effort to use technology to modernize the financial ecosystem of Pakistan. The regulator said the initiative aims to promote digital access, improve ease of doing business and ensure secure and reliable customer verification.
Under the amended framework, digital verification methods are now recognized as an alternative to traditional processes. This is expected to allow quicker access to regulated financial services while keeping strong regulatory safeguards in place.
To strengthen investor protection and reduce the risk of unauthorized financial activity, all future transactions will be limited to verified bank accounts held in the name of the customer. The SECP said this will ensure greater transparency and traceability across the market.
In line with initiatives of the National Database and Registration Authority (NADRA), the amended regulations also introduce advanced biometric verification options, including facial recognition. Customer accounts linked with CNICs blocked or impounded by NADRA will be subject to immediate blocking under the revised framework.
The amendments also recognize digital logs as valid records for AML/CFT compliance and data retention purposes. Prescribed forms have been updated as well, in line with the Companies Regulations, 2024.
