Islamabad (GNP): The Securities and Exchange Commission of Pakistan (SECP) has rolled out IBAN-based digital verification to streamline customer onboarding, allowing investors to access financial services more easily and without repetitive documentation requirements.
To enable this shift, SECP amended its AML/CFT/CPF Regulations, 2020, allowing regulated entities — including securities brokers, futures brokers, insurers, takaful operators, non-banking finance companies, and modarabas — to verify customers through their IBAN details as part of the KYC process.
The move is part of SECP’s broader push to modernize Pakistan’s financial sector through technology, aiming to improve digital access, ease of doing business, and the reliability of customer verification processes.
Under the updated framework, digital verification is now formally recognized as an alternative to conventional onboarding methods, allowing faster access to regulated financial services while preserving regulatory oversight.
To enhance investor protection and reduce the risk of unauthorized activity, all future transactions will be limited to verified bank accounts held in the customer’s own name, improving transparency and traceability across the market.
Aligned with initiatives from the National Database and Registration Authority (NADRA), the amended regulations also introduce advanced biometric verification options, including facial recognition. Accounts linked to CNICs blocked or impounded by NADRA will be automatically frozen under the revised rules.
The amendments additionally recognize digital logs as valid records for AML/CFT compliance and data retention purposes, and relevant forms have been updated to align with the Companies Regulations, 2024. The full amended regulations are available on SECP’s website.
Also read: URAAN Pakistan Is the Roadmap to a $1 Trillion Economy, Ahsan Iqbal
This update follows last month’s announcement by SECP of plans to launch a mobile application aimed at simplifying investor onboarding and expanding participation in Pakistan’s capital markets through digital channels. SECP Chairman Dr. Kabir Ahmed Sidhu said the initiative would bring stock market and investment services directly to investors’ mobile phones, simplifying the investment process while reinforcing investor protection.
Sohail Majeed is a Special Correspondent at The Diplomatic Insight. He has twelve plus years of experience in journalism & reporting. He covers International Affairs, Diplomacy, UN, Sports, Climate Change, Economy, Technology, and Health.
