The Securities and Exchange Commission of Pakistan (SECP) has introduced proposed regulatory changes aimed at strengthening digital investor onboarding through IBAN-based verification and biometric authentication. The move is designed to improve transparency in financial transactions and reduce the risks of financial crime.

Under the proposed amendments to Anti-Money Laundering (AML) regulations, investors will be required to conduct all transactions through verified bank accounts or e-wallets linked via IBAN. This system is intended to enhance traceability of funds and minimize the chances of unauthorized or suspicious activity in the financial system.

To support verification, the framework allows IBAN validation through SECP-approved entities, including the National Clearing Company of Pakistan Limited (NCCPL), using platforms such as RAAST for real-time confirmation and authentication of banking details.

In addition to banking verification, the regulator is also planning to introduce multi-layer biometric checks for investor onboarding. This includes facial recognition systems integrated with NADRA databases to further strengthen identity verification and reduce the risk of impersonation or fraud.

The initiative is part of SECP’s broader push to enable a fully digital onboarding ecosystem while ensuring strict compliance with AML and Know Your Customer (KYC) standards. However, the commission has clarified that regulated financial institutions will continue to remain fully responsible for customer due diligence, ongoing monitoring, and compliance with AML requirements.