The Securities and Exchange Commission of Pakistan (SECP) has introduced IBAN-based customer verification, allowing regulated financial institutions to complete Know Your Customer (KYC) requirements using a customer’s bank account details instead of relying solely on conventional verification methods.

The change comes through amendments to the AML/CFT/CPF Regulations, 2020, enabling securities brokers, futures brokers, insurers, takaful operators, non-banking finance companies (NBFCs), and Modarabas to use customers’ IBANs for digital identity verification.

According to the SECP, the initiative is designed to simplify account opening, reduce repetitive documentation, and provide investors with quicker access to regulated financial services. The regulator said the move is part of its broader strategy to digitize Pakistan’s financial sector and improve the ease of doing business.

Under the revised framework, digital verification has been formally recognized as an alternative to traditional KYC procedures, allowing financial institutions to onboard customers more efficiently while complying with anti-money laundering and counter-terrorism financing requirements.

To enhance investor protection, all transactions will be limited to bank accounts verified in the customer’s own name. The SECP said this measure will help curb unauthorized financial activity while improving transparency and traceability across the financial system.

The updated regulations also introduce biometric verification options, including facial recognition, in line with NADRA’s digital identity initiatives. Accounts linked to blocked or impounded CNICs will be suspended immediately under the new framework.

Additionally, the amendments recognize digital logs as valid records for AML/CFT compliance and record retention. Prescribed forms have also been revised to align with the Companies Regulations, 2024.

The amended AML/CFT/CPF Regulations, 2020 are now available on the SECP’s official website.