ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has implemented a new system using IBAN-based digital verification to streamline the onboarding process for customers, allowing investors to access financial services more efficiently without unnecessary documentation. This initiative aims to simplify Know Your Customer (KYC) requirements and eliminate repetitive verification procedures.

According to Securities and Exchange Commission of Pakistan, the introduction of this digital transformation involves amendments to the AML/CFT/CPF Regulations, 2020. These amendments permit regulated entities, including securities brokers, futures brokers, insurers, takaful operators, non-banking financial companies (NBFCs), and modarabas, to utilize IBAN details for customer verification. This measure is part of SECP’s broader initiative to modernize Pakistan’s financial system by integrating technology, enhancing digital access, improving business operations, and ensuring secure customer verification.

The revised framework endorses digital verification as an alternative to traditional methods, promoting quicker access to financial services while preserving strong regulatory safeguards. To bolster investor protection and reduce unauthorized financial activities, future transactions will be confined to verified bank accounts in the customer’s name, ensuring market transparency and traceability.

Aligned with efforts by the National Database and Registration Authority (NADRA), the updated regulations incorporate advanced biometric verification options, such as facial recognition. Accounts associated with NADRA-blocked or impounded CNICs will face immediate blocking under the new framework. Additionally, the amendments acknowledge digital logs as valid records for compliance with AML/CFT requirements and data retention, with prescribed forms updated to align with the Companies Regulations, 2024.