Pakistan Makes Facial Recognition Mandatory for All Forex Transactions by 2026

Pakistan’s foreign exchange sector is set for a major technological overhaul. The State Bank of Pakistan (SBP) has announced that all foreign currency transactions will require facial recognition verification from 1 January 2026, marking one of the country’s most significant digital security upgrades to date.

SBP Shifts to Dual-Biometric Verification

Under the new directive, Exchange Companies (ECs) will no longer rely solely on NADRA’s thumb and fingerprint identification system. Instead, customers will undergo dual-modality biometric verification, which includes both fingerprint scanning and facial recognition, before a transaction is approved.

The move follows instructions from the Ministry of Interior and Narcotics Control, which directed NADRA to integrate facial recognition technology into its existing verification framework. SBP updated its rules accordingly, aligning the financial sector with a uniform identity authentication standard.

Why Facial Recognition Now?

SBP says the enhanced verification system aims to curb identity fraud, address loopholes in the current authentication process, and improve transparency within the currency market. By introducing facial scans, regulators hope to build stronger barriers against illegal forex trading and impersonation-based scams.

The requirement falls under Chapter 7 of the Regulatory Framework for Exchange Companies, where biometric verification is already mandatory. The new facial recognition layer transforms the existing protocol into a more robust digital security shield.

Exchange Companies Get a Tight Deadline

Exchange companies currently perform real-time fingerprint checks via NADRA and maintain six months of CCTV footage as part of compliance. While they are familiar with digital oversight, the addition of facial recognition will require significant technical upgrades.

SBP has instructed ECs to begin preparations immediately so they can fully implement the system before the January 2026 deadline.

With this move, Pakistan is pushing its financial sector deeper into biometric-driven verification—a shift that reflects global trends in fintech security and digital identity management.

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