The Securities and Exchange Commission of Pakistan (SECP) has authorized financial institutions under its supervision to verify customers using International Bank Account Numbers (IBANs) for Know Your Customer (KYC) compliance. The decision, announced on Saturday, aims to simplify investor onboarding and reduce paperwork.
Amendments to AML/CFT Regulations
The change comes through amendments to the SECP's Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Counter Proliferation Financing (CPF) Regulations, 2020. The revised framework is expected to help regulated entities—including securities brokers, insurers, and non-bank finance companies—carry out KYC verification more efficiently, making the process faster and simpler.
Modernization Through Technology
The initiative is part of the regulator's efforts to modernize Pakistan's financial system through technology, expand digital access, strengthen regulatory oversight, and improve the ease of doing business, according to the SECP. “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,” the SECP said in a statement. “Customer accounts linked with NADRA-blocked or impounded CNICs will be subject to immediate blocking under the revised framework.”
Digital Verification as an Alternative
The amended framework recognizes digital verification methods as an alternative to traditional customer onboarding, enabling faster access to regulated financial services while maintaining regulatory safeguards, the regulator said. The SECP added that all future transactions would be restricted to verified bank accounts held in the customer's own name to improve transparency and traceability.
Digital Logs and Updated Forms
The amendments also recognize digital logs as valid records for anti-money laundering compliance and data retention requirements, while updating prescribed forms to align them with the Companies Regulations, 2024.
Plans for Mobile Application
Last month, the SECP announced plans to launch a mobile application to simplify investor onboarding and expand participation in Pakistan's capital markets through digital platforms. SECP Chairman Dr. Kabir Ahmed Sidhu said digital technology would bring stock market and investment services to investors' mobile phones while simplifying investment processes and strengthening investor protection.
