SECP Enables Digital KYC Through IBAN-Based Verification

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 AML/CFT/CPF Regulations, 2020, allowing Regulated Persons, including Securities Brokers, Futures Brokers, Insurers, Takaful Operators, NBFCs and Modarabas, to verify customers using their IBAN details for completion of KYC requirements.

The initiative is part of SECP’s efforts to leverage technology for modernizing Pakistan’s financial ecosystem, promoting digital access, improving ease of doing business, and ensuring secure and reliable customer verification.

The amended framework recognizes digital verification methods as an alternative to traditional processes, enabling quicker access to regulated financial services while maintaining strong regulatory safeguards.

To strengthen investor protection and minimize the risk of unauthorized financial activity, all future transactions will be restricted to verified bank accounts held in the customer’s own name, ensuring greater transparency and traceability across the market.

In line with the 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 NADRA-blocked or impounded CNICs will be subject to immediate blocking under the revised framework.

The amendments further recognize digital logs as valid records for AML/CFT compliance and data retention purposes, while prescribed forms have also been updated in line with the Companies Regulations, 2024.

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