Islamabad: The Securities and Exchange Commission of Pakistan (SECP) has announced significant proposed amendments to the AML/CFT/CPF Regulations, 2020, aiming to bolster anti-money laundering measures while facilitating the complete digital onboarding of investors. The proposal introduces International Bank Account Number (IBAN)-based verification and mandates the use of authenticated bank accounts or e-wallets, alongside multi-biometric verification methods.

According to Securities and Exchange Commission of Pakistan, the proposed regulations will accept IBAN verification through SECP-notified entities, including the National Clearing Company of Pakistan Limited (NCCPL) via the RAAST system, as valid identity proof, subject to meeting all anti-money laundering requirements. This initiative requires investors to conduct transactions solely through IBAN-verified accounts, enhancing traceability and minimizing unauthorized transaction risks.

Additionally, the amendments introduce a multi-layered biometric verification system, incorporating facial recognition technology in alignment with the National Database and Registration Authority (NADRA) systems, to strengthen identity verification processes. SECP has emphasized that Regulated Persons (RPs) will maintain full responsibility for know-your-customer (KYC) processes, due diligence, transaction monitoring, and AML compliance.

The draft amendments have been released for public consultation and are accessible on the SECP website, with feedback invited within a 14-day period.