KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has proposed sweeping amendments to its anti-money laundering and counter financing regulations, introducing IBAN-based verification and multi-biometric authentication to enable fully digital onboarding of investors, according to a statement on Friday.
The proposed changes to the AML/CFT/CPF Regulations 2020 aim to strengthen safeguards against financial crimes while streamlining investor onboarding through digital channels. Under the new framework, IBAN verification conducted through SECP-notified entities, including the National Clearing Company of Pakistan Limited (NCCPL) via the Raast payment system, will be accepted as valid proof of identity, subject to compliance with anti-money laundering requirements.
The regulator said investors will be required to conduct transactions only through IBAN-verified bank accounts or e-wallets. This measure is expected to improve traceability of funds and minimise risks linked to unauthorised or anonymous transactions.
In addition, the amendments introduce a multi-biometric verification mechanism, including facial recognition, aligned with systems of the National Database and Registration Authority (Nadra). The move is aimed at strengthening identity authentication and reducing the potential for fraud in digital onboarding processes.
Despite the shift towards automated verification, the SECP has made it clear that regulated entities will
continue to bear full responsibility for Know Your Customer (KYC) processes, customer due diligence, transaction monitoring and overall compliance with AML regulations.
